subject: Elderly Debt: Responsible Solutions [print this page] The elderly and their debt is a growing concern for many caregivers. They are feeling the urgency to have the problem solved to shed any possible responsibility for the money owed. These caregivers will not be responsible for the debt unless they were cosigners somewhere on any of it, but the morality involved in wanting to get it paid back is powerful for many. The obligation can be powerful to the elder person and/or the caregiver, so be aware of options available.
Find out what kind of debt it is. Who are the creditors? How much is owed and why? Different debt carries an array of aspects which sets urgency and importance. If debt is owed to both a large company and a small local business, you may want to pay off the little guy first. Any individual who may have provided a service and is counting on that money to provide for his/her family may end up in the high priority list. As far as moral obligation goes, these circumstances will dictate the priority of payments.
The elderly have often been known to fall victim to scam artists as well as get confused using credit cards. Debt can build up fast with either of these. Look at the payment history and see about reducing or eliminating the debt all together.
*Can the payments be lowered to reflect income?
*Is there a mortgage that can be reversed?
*If confusion is a factor, take away credit cards and get financial power of attorney.
*Request debt forgiveness from the creditors stating the situation in a written letter.
*If the elder is not on Medicaid, apply to do so.
*Contact Consumer Credit Counseling Services for negotiations help.
*Bankruptcy is an option with the assistance of an attorney. This option has seen a sharp increase.
Now that the first of the baby boomers are on Social Security, there will be many more seniors with higher rates of debt. If they have not carefully planned for retirement, the credit card debt will continue to rise as Social Security payments do not increase in accordance with the cost of living. Interest rates alone will keep that debt growing unless there is another source of income to lower the balance.
Before the debt piles up too high, utilize programs which are already set in place to help provide assistance to the elderly. Seniors can apply for Medicaid and look for prescription assistance programs. There are many states who are offering seniors discounted rates on property taxes. The U.S. Department of Energy offers assistance with the energy bills.
If the elder passes before the debt is taken care of use the money you have to take care of whatever amount you can. Once the money is gone, you can write a letter to the creditors letting them know the situation and that there are no more moneys to take care of the debt.
