Baby Boomers and their cohorts born during the middle part of the 20th Century—between the years of 1946-1964—are a generation of active lifestyles, risk-taking rebellions, musical and cultural significance, and, as they come to represent one third of the population of North America, a group making significant demands on the societies in which they live. But now, Baby Boomers are adding one more superlative to the bunch: they’re also a generation of financial insolvency.
According to a recently-released study from the American Bankruptcy Institute’s ABI Journal, 42 percent of all debtors filing for bankruptcy were between the ages of 45 and 64 in 2007. In addition, these older Americans are filing for bankruptcy at an even faster rate than their younger counterparts.
So, what’s the reason for these rising rates of bankruptcy among our nation’s more mature Americans? Like so many individuals during these tough economic times, our country’s more Boomer populations are experiencing off-the-charts unemployment, staggering medical expenses, overwhelming consumer debts and credit card bills, underwater mortgages, and the subsequent siphoning of retirement funds.
But all of these terrible conditions—which are difficult at any age—are exacerbated for the Baby Boomer set. For example, with one job for every five people needing one, older Americans must also face age discrimination in an already competitive job market—whether they’ve been laid off or are attempting to re-enter the workforce following a not-so-tranquil attempt to retire in our not-so-fun financial era. With the average duration of Boomer unemployment running weeks or months longer than that of their younger peers, many older jobseekers are forced, more often than anyone, to turn to their remaining retirement funds, credit cards, or loans, just to stay afloat.
What’s worse is that with the loss of their job, Boomers face the loss of their health care insurance, a sometimes devastating scenario for a generation of older Americans often experiencing their first genuine medical conditions, illnesses, injuries and other medicinal needs. But these risks don’t simply relate to physical maladies: living without health insurance can mean financial ruin when an individual is faced with a medical emergency. These emergencies can also force older Americans to turn to home equity or retirement accounts in an attempt to repay lingering medical debts.
By drawing from their savings, retirement, equity, and credit cards, Baby Boomers create a vicious cycle of spending that, in time, can leave them with no nest egg for the inevitable rainy days when they are unable to work, unable to avoid medical maladies, and unable to turn to other sources of income for help. What’s worse is that as they age, these mature men and women are often targeted for payday loans and foreclosure scams that take advantage of their generational desire to carry their own weight and pay off their debts—albeit at unmanageable interest rates.
These scenarios, in which a Baby Boomer’s only recourse is to use their valuable assets or consumer credit to stave off creditors, is precisely why bankruptcy was created.
So, if you’re a Baby Boomer who’s been effected by the economy, and are now considering new ways to get out from underneath ever-increasing debt, knowing a qualified bankruptcy attorney can help you conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.