Debt is not something that simply goes away with age. Wouldn’t it be nice though if it did? Because debt is an issue that many people will struggle with throughout their lives, we will take a look at how seniors can manage debt late in life. It’s quite a simple process really, but it’s an important one to learn.
Your first option is to put together a debt repayment plan. You can do this one of two ways: Repay the debt with the highest interest rate first and make minimum payments on the rest of your debt or repay the debt with the lowest interest rate first as you make minimum payments on the rest of your debt.
You need to put together a family budget. Even if you live alone as a senior, you still need to live on a budget. Be honest about your budget too. Figure out how much money you have coming in through retirement and how much your monthly bills are. Be sure to cut down on as much unnecessary spending as possible so you can stick to the budget.
Take a long look at attending credit counseling. This is a requirement for filing for bankruptcy anyway, so why not take this class ahead of time? A credit counselor will be able to take a hard look at your income, spending and budget before providing you with expert advice.
You should also speak with a bankruptcy attorney about your situation. An experienced attorney will be able to answer all of your questions about bankruptcy and how it can help your situation.
Are you struggling to manage debt late in life? Speaking with an experienced bankruptcy attorney in Long Island can help you understand your situation and the options available to you.
Source: National Council on Aging, “Manage Your Debt: 4 Tips for Seniors,” accessed Oct. 06, 2017