AICCCA Wants Seniors To
Keep An Eye On Their Credit Spending
Fairfax, VA — September 27, 2004 — While many of this country's senior citizens are living on fixed incomes, their cost of living expenses often exceed this income every month. Therefore, many seniors rely on credit cards to extend their day-to-day costs. According to Demos, a New York City based policy group, the average self-reported credit card debt rose among indebted persons over age 65 by 89 percent between 1992 and 2001.
"We sometimes only associate the overuse of credit with 18-34 year olds, and do not always consider the actions of many seniors," says Dave Jones, president of the Association of Independent Consumer Credit Counseling Agencies (AICCCA). "When seniors begin to use credit to pay for their fixed expenses, they may quickly find themselves in debt."
While many seniors experience debt due to poor financial planning, a sharp increase in expenses such as hospitalization or home repair to damaged property can also quickly place many unprepared seniors in debt.
AICCCA offers the following tips to senior citizens who wish to improve their financial status:
Set a financial budget — Even though you may be retired, this is no time to stop paying attention to your finances. In addition to knowing your actual income and assets, you must also consider your monthly expenses. Upon retirement, expenses such as food, clothing, shelter and healthcare will still be a concern. If you are suddenly living on a specific fixed income, it is time to match your monthly income with your expenditures.
Consider extra income opportunities — The list of income opportunities for the retired does not stop at borrowing against any equity that you may have. Consider a part-time job in the community. In addition, you may want to sell off some assets that you no longer need for some extra income. This money can be used to help pay off any outstanding debts. You could also consider a reverse mortgage such as the Home Equity Conversion Mortgage insured by the federal government.
Pay off credit and use only when needed — Once you have set specific spending guidelines for yourself, try and limit your credit card use. So long as you understand monthly cost of living expenses, you can plan ahead and avoid having to use credit for customary expenses or emergencies.
Plan for the future — Despite a senior's age, knowledge is key when dealing with credit card debt. If you would like help planning for the future, credit counselors are available to show you how to develop budgets and savings plans. You can locate a member of AICCCA by calling 800-450-1794 or visiting www.aiccca.org.
Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call (800) 450-1794 or visit www.aiccca.org.
