Senior citizens should be careful with their money
Image source – Flickr User Ethan Prater
If you're over 60 and experiencing money problems, now is the time to get back on the right track. Retirees in America are harder hit now than they have been in recent history. Fewer companies than ever are offering paid retirement and those that are offer much more modest pensions. This means that more seniors are living solely on Social Security with only a small (if any) savings buffer to protect them. According to the Federal Reserve, 40% of consumers age 55-64 have no retirement savings at all which is tough when there are increased costs as we age for medical expenses, caregivers and other costs in a period when our income either levels out to fixed or declines.
Do you have a financial buffer? Are you tapping into it more than you should?
If you do have a retirement account, are you using it wisely? Life spans are much longer now so that means any savings you have will need to last you even longer. Spending foolishly or on things you don't need doesn't make sense. And with the after-effects of the recession still plaguing many of us in North Carolina, you may be helping kids or grandkids with their money issues. These are just some of the issues you may be facing. Below are some of the top financial problems faced by seniors in NC:
- Increasing medical and medication costs
- Loss of income when spouse dies
- Job loss or lack of offers for those that want or need to work
- Children and grandchildren asking for financial help
- Loss in home equity from real estate crash
Are you making these common money mistakes that can ruin your golden years?
What we see from seniors is that they adamantly want to pay their bills, even bills they truly can't afford to pay. This is the mindset of their hard-working generation. While this is understandable and to be admired, it isn't always the wisest approach for your long-term financial stability. Here are some of the top money mistakes we see seniors make in order to pay bills:
- Taking out a second mortgage or home equity line of credit
- Canceling or cashing in their insurance policies
- Selling off assets or belongings
- Skipping out on doctor's appointments or prescription refills
- Running up credit cards for living expenses
- Exhausting themselves financially to help children/grandchildren
The better solution for a financially secure retirement with peace of mind
You've worked hard for years and you deserve to enjoy your golden years without stressing over every penny. You shouldn't have to sell off family heirlooms or skip taking medication you need and put your health at risk simply because you're prioritizing bills above your health. You may be embarrassed at the idea of filing bankruptcy, but you shouldn't be.
Think of Chapter 7 bankruptcy as a one-time “get a fresh start” card that will allow you to regain your financial footing. If you allow your finances to continue to deteriorate, it may get to the point of no recovery. You don't want to drain your retirement account or sacrifice the equity in your home. These are assets you need to see you through the remaining years of your life.
Filing bankruptcy will wipe out any unpaid medical bills, credit card debt, personal loans and any lingering unpaid older unsecured debts. With these debts out of the way, you can focus on paying your living costs and taking care of your medical expenses without spending your precious retirement dollars on debts you simply cannot afford to pay.
To find out how we can help you get the peace of mind and financial fresh start you deserve, contact the law offices of John T Orcutt today for a free consultation. We'll look at your finances and give you expert advice on your best options to regain your financial footing. There is no judgment and no one will make you feel bad. We're here to help. Call today.