Debt Management Tips for Senior Citizens

The debt buster

Nobody I know wants to expend the last period of their life struggling with debt.  Unfortunately though, that is exactly what is happening for an increasing number of senior citizens.  There are a lot of options available to younger people such as getting a second job to pay off the debt faster are objective not available to senior citizens.  So what is?   Here is an often overlooked list of items that can succor you in such circumstances:

Even if you have

some savings it is not a honorable concept to pay off the loan even though you are paying 20% interest on one hand and earning only 4% on the other.  The reason is that incase you face any financial burden in the future, you will not win aid anywhere.  So it is wiser to retain your cash to yourself, and credit to your creditor!  Easier said than done, but remember, your money is for your security.

Also, if you really don't have the money to pay off your credit card debt you can reflect letting the creditors sue you!  This decision has more psychological barriers than any other.  If a creditor sues you they cannot buy your property.  The worst they can do is do a lien against it and claim it only after you die.

If you don't have a property then the debt is written off with your death and your inheritors don't have to pay it.  Creditors are also unable to access your retirement funds so you really don't have that grand to lose, until you lose your life, at which point you have lost everything anyway.

If you have a life insurance policy you can definitely assume taking a cash surrender loan.  This loan doesn't have to be repaid and your policy value is surrendered when you retract one.  The help here is realizing that this policy money is received by your heirs only after you die, and is therefore not helping you in any design.

Rather than contrivance on a line of credit for your home a better thought would be to go for a reverse mortgage.  In a line of equity, you have to repay the sum with interest, in a reverse mortgage you don't have to repay anything but simply give up ownership rights of the property after you pass away.  You will receive a fixed sum monthly until you die, where after the property will be taken by your creditor.  This means you are simply forgoing leaving the asset to your loved ones, but are able to catch an additional monthly income to improve your life while you live.

It's up to you.  Do you want to sacrifice your golden years for your heirs, or do you want to live them for yourself?