Seniors With Credit Card Problems

Expenses

• Although seniors also use their credit cards for pleasure, such as vacation, shopping and entertainment, they spend more on medical expenses. According to a survey cited by Newsweek, 53 percent of retirees spend a big portion of their credit card funds on medicine, doctor visits and hospital stays. Additionally, more than 75 percent of retirees say that they go into debt because of medical and funeral expenses.
  
  

Non-Payment

• Almost 40 percent of retirees don't worry about paying off their debts, according to the survey cited by Newsweek. Although more than half of surveyed retirees had debts and little savings before retirement, only 4 percent put off retirement to pay off their debts. They may decide not to pay their credit card debts at all because they don't know where to start and they are too embarrassed to seek help.
  
  

Bankruptcy

• Seniors who face credit card problems may file for bankruptcy. According to Reuters, nearly 45 percent of seniors who file for bankruptcy have more credit card debt and more credit cards. If a senior files for a Chapter 7 bankruptcy, he may have to give up his home and find an affordable housing. If he files for a Chapter 13 bankruptcy, he may be able to keep his home and his retirement savings.
  
  

Impact on Heirs

• When seniors die with credit card problems, their heirs bear the financial burden. Before the heirs obtain the assets in the estate, the estate has to pay for any outstanding debts, including credit card debt. This results in fewer assets going to the heirs. For example, the house may have to be sold to pay off the credit card debt. To keep it in the family, the heirs may have to pay off the outstanding amount with their own money.