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Earn a high-yield savings rate with JG Wentworth Debt Relief
Let’s talk about something that’s been weighing on the minds of many older adults lately: debt. Americans aged 50 and older had significantly more debt in 2016 than in 1989, according to GAO’s analysis of Survey of Consumer Finances (SCF) data. More recently, poverty rates rose for older Americans in 2021 and it was the only demographic group to experience rising poverty, according to the U.S. Census.
If these troubling trends continue, more and more seniors in the U.S. will be faced with debt during their retirement years. Whether you’re a senior struggling with debt or have an older loved one you’d like to help, we’re going to dive into what’s often called “senior debt” and explore some ways to deal with it.
What exactly is senior debt?
The most common types of senior debt include:
- Mortgage debt: Many seniors are still paying off their homes.
- Credit card debt: Younger adults aren’t the only ones with mounting credit debt.
- Medical debt: Healthcare costs can be a real burden, especially as we age.
- Auto loans: One of the most common types of debt at any age.
- Personal loans: Sometimes life throws us curveballs, and we need a little extra cash.
- Student loan debt: Some seniors are still paying off their own education or loans they took out to help their kids or grandkids.
Why is senior debt an issue?
There are a few reasons why it’s particularly concerning:
- Fixed incomes: Many seniors are living on fixed incomes from pensions, Social Security, or retirement savings. When a big chunk of that goes to debt payments, it can really squeeze the budget.
- Health costs: As we age, healthcare expenses tend to go up. Balancing these costs with debt payments can be really tough.
- Limited earning potential: It’s not always easy for seniors to pick up extra work to pay off debt.
- Stress and quality of life: Financial worries can take a toll on mental and physical health, affecting overall quality of life.
- Legacy concerns: Many seniors worry about leaving debt behind for their families to deal with.
What can seniors do about it?
The good news is that there are several options available. Let’s break them down:
- Budgeting and financial planning: Sometimes the simplest solutions are the most effective. Taking a good, hard look at your income and expenses can help you find areas where you can cut back and redirect money towards debt payments.
- Debt consolidation: Combining multiple debts into a single loan, often with a lower interest rate. It can make your debt more manageable by giving you just one payment to worry about each month.
- Reverse mortgage: For homeowners aged 62 and older, a reverse mortgage allows you to borrow against the equity in your home. The loan doesn’t have to be repaid until you sell the house, move out, or pass away. But be careful: these can be complex and aren’t right for everyone.
- Negotiating with creditors: Don’t be shy about reaching out to your creditors. Many are willing to work with seniors to lower interest rates or set up more manageable payment plans. Remember, they’d rather get some money from you than none at all.
- Credit counseling: There are non-profit organizations out there that offer free or low-cost credit counseling for seniors. They can help you understand your options and create a plan to tackle your debt.
- Bankruptcy: This is usually considered a last resort, but in some cases, it might be the best option. There are different types of bankruptcy, and some allow seniors to keep their homes and other essential assets while discharging unsecured debts.
- Seeking family help: This can be a sensitive topic, but some seniors find that their adult children are willing and able to help with debt payments. Just make sure everyone is clear on the terms to avoid family tension.
- Downsizing: Moving to a smaller home or less expensive area can free up cash to pay off debts. It’s a big step, but it can make a huge difference in your financial situation.
- Part-time work: If you’re able, taking on a part-time job can provide extra income to put towards debt. And hey, it might even be fun – think about turning a hobby into a small business!
- Government and non-profit assistance programs: There are various programs out there designed to help seniors with financial struggles. These might include assistance with housing, healthcare costs, or even debt relief.
Take your next step towards being debt-free
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A word of caution
Unfortunately, seniors find themselves as one of the most vulnerable demographics when it comes to scammers. If something sounds too good to be true, it probably is. Always do your research and don’t be afraid to ask for a second opinion.
The bottom line
Dealing with debt at any age isn’t fun, but it can be especially challenging for seniors. The most important thing to remember is that you’re not alone, and there are options available. Don’t be afraid to ask for help, whether it’s from family, financial professionals, or reputable organizations like JG Wentworth that assist people struggling with debt.
And who knows? Maybe tackling this debt will be the start of a whole new, financially savvy chapter in your life. After all, they say wisdom comes with age – why not apply some of that wisdom to your finances?
There’s always JG Wentworth…
If you’re a senior (or have a loved one who is) with $10,000 or more in unsecured debt, there’s a good chance you’ll qualify for the JG Wentworth Debt Relief Program.* Some of our program perks include:
- One monthly program payment
- We negotiate on your behalf
- Average debt resolution in as little as 48-60 months
- We only get paid when we settle your debt
If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs. Why go it alone when you can have a dedicated team on your side?
SOURCES CITED
Nguyen, T., “Retirement Security: Debt Increased for Older Americans over Time, but the Implications Vary by Debt Type.” U.S. Government Accountability Office. April 16, 2021.
“Income, Poverty and Health Insurance Coverage in the United States: 2021.” United States Census Bureau. September 13, 2022.
About the author
This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
* Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment.
JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy.
