Senior Citizens Debt Advice - the Cost of Delay
Solving Debt Problems and Becoming Debt Free
Dec 13, 2008
Senior citizen debt has become a huge problem as increasing numbers struggle to cope with spiraling living costs. Such financial problems are a sign of the times as the fixed incomes of seniors leave little room for maneuver in event of personal turmoil.
Senior Citizen Debt Problems Caused By Unwillingness to Seek Advice
John Fairhurst, Managing Director of Payplan, stated that: "Our research shows that British debtors are waiting far too long before seeking professional help." Many pensioners wait until they hit rock bottom before seeking debt advice.
Payplan research showed that those of or approaching retirement age had the largest shortfalls in income relative to expenditure. Those aged over 60 had a monthly income shortfall of £724 meaning that a 55% income increase would be needed to help meet monthly commitments.
Tackling Senior Citizen Debt Problems
- Produce a budget. Putting together a full breakdown of all incomes and expenditures helps to identify areas where savings can be recognised. Place a particular focus on cutting social spending.
- Check benefit entitlement. Get an assessment performed to see if pension credit or carers allowance can be claimed for. Many seniors may also not have to pay council tax or for a TV licence if over 75.
- Cheaper food shopping. It is possible to save money on food shopping by purchasing unbranded, multi-buys and discounted items.
- Reduce gas and electricity bills. Use an online comparison site to identify the cheapest utility providers. It is also possible to reduce gas and electricity bills through greater energy efficiency.
Use Debt Solutions to Eradicate Debt Problems
- Debt Management Plan. This allows a senior with debt problems to put all unsecured debts under one roof and make a single, affordable payment each month. The money is then apportioned to creditors on a pro rata basis. A 15% fee is normally charged for managing the Debt Management Plan.
- Consolidation loans. It is possible to consolidate all debts under a single loan, increase the term of the loan and reduce monthly outgoings thus making life more affordable.
- Individual Voluntary Arrangement. This allows a borrower to pay a pre-agreed amount to an Insolvency Practitioner for 60 months and the remainder of the debt is written off. It is a solution to serious debt problems only and should not be considered to tackle debts of under £15,000.
- Personal bankruptcy. This is also a debt solution for when financial problems are serious. It is not suitable for home owners or those in certain professional occupations who wish to continue working past retirement age.
If financial problems have become an issue, it is important that a senior seeks free and impartial debt advice from a qualified debt counsellor. Don't delay in taking action, as financial problems don't go away on their own. There are a number of debt solutions available to help seniors become debt free.
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