For senior adults living on a fixed income, escalating debt can lead to financial ruin.
More and more of the elderly are in outright financial distress.
One in seven households headed by someone 65 years of age or older was considered heavily indebted in 2006 – devoting at least 40% of their income to debt payments, according to the Federal Reserve’s Survey of Consumer Finances. That compared with one in ten among all households in debt.
While home loans are usually their biggest payment, the elderly have been rapidly accumulating other debts as well. Credit card bills – to cover everything from minor emergencies to ongoing essentials – have risen sharply. All told, the debt burdens of borrowers between the ages of 65 and 74 have doubled in the past 10 years according to the Federal Reserve.
Continued on Part 2
Posted by Ted Cantu - on April 9, 2008 at 12: 50 AM and can be found at http://www.1seomichigan.com