In America, average Head Of Household (HoH) debt for those 75 or older was $36k+ as of 2016. That’s a solid year’s wages at a monthly income of over $3k. Many retired seniors aren’t making that kind of money anymore, and are instead living on pensions, social security benefits, or other fixed income.
Popular tips to handle such debt include restructuring budgets to pay off the debt, getting a second job and coming out of retirement, or working with a company who offers solutions specifically tailor-made to retired seniors. Putting together a debt agreement by Debt Busters may involve considerations for your estate, and it could involve consolidation of existing debts together. There may be many options you haven’t had occasion to consider as yet.
One thing that seniors often do is sell the mortgage on their home. This can eliminate debt, and leave enough after the fact for those who’ve sold their home to enroll in a senior living community. Fixed income rolling in can help provide a comfortable living situation in such scenarios.
Debt is a big problem today, and it comes from multiple sources. Health problems can lead to debt, as can student loans, or poor investments. Divorce, custody battles, legal fees, and other issues likewise manifest debt with regularity. If that weren’t enough, tax agencies can find reasons to penalize citizens seemingly out of the blue, if they have the motive.
Equipping Yourself To Contend With Debt In Later Life
If you’re going to handle these issues in early or later life, it’s important to equip yourself with resources which help you know your options. You might start by determining where you have necessary and unnecessary expenses. Generally, there are many little things which can be done to secure debt-free living.
A $36k debt can be paid off in just a few years, if you’re able to cut your monthly spending down. What do you absolutely need, and where are you spending unnecessarily? Do you drive, or use public transit options? Cut out driving and you can save $3k a year in gas, or more. Do you eat out regularly? Five $50 dinners a week is $250, or $1k a month. That could be $12k a year. Are you spending your fixed income on frivolous things?
People like to go out and buy coffee on a daily basis. They also like buying treats at gas stations. Imagine you spend $5 on coffee or other drinks from a cafe every day. Imagine you spend another $5 on snacks at a convenience store, or from a vending machine. Just cutting these expenses out on a daily basis yields $3,650.
Researching, Reselling, And Freeing Yourself From Debt
Where else can you cut spending? Or, conversely, where you can you turn existing assets into debt-canceling value? Books can be collectors items, and you may have some from your younger days that have matured in value substantially. Certain clothing items and toys can be this way as well, as can certain appliances.
You might look online to see if anything you own has matured in value incidentally. There’s been a craze which has put new value into old vinyl records. If you’ve some in good condition, a small collection could be worth a few thousand dollars. Older furniture items of quality can additionally yield value.
There are also debt relief programs for which you have the potential to qualify as a retired senior. Check this link for further information, including a link to senior debt relief hotlines. The bottom line is: you want to get rid of that debt however possible. This will give you more freedom, and it can preserve relatives from having to deal with pernicious debt collectors.