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A distressing trend that was first observed throughout the economic downturn seems to be on a continued upswing, despite an improving monetary picture for the nation: increasing financial obligation levels among senior citizens.
According to CNN Money, using information from the Federal Reserve, the ordinary financial obligation tons held by an American over 65 was $50,000 in 2010, which represents an 83 % boost because 2001. The most usual types of debt among senior citizens are mortgage and charge card debt.
The reason for rising financial obligation levels amongst those 65 and older appears to be two-fold: on the one hand, many seniors, like other Americans, borrowed and spent too much in the years getting at the recession. This implies that their debt levels were already reaching unsustainable levels when the bottom fell out of the market in 2008. This put many in a tenuous financial position when they discovered themselves all of a sudden undersea on their homes and with limited access to credit. On the other hand, many of today’s senior citizens are retiring without employer-sponsored pensions, and some failed to conserve enough to make ends satisfy in retirement. This indicates that lots of have to depend on credit cards to cover even basic living costs, pushing seniors into deeper into financial obligation.
Rising financial obligation levels among any market is bothersome, but experts are especially concerned about senior citizens being in the red. Numerous older Americans aren’t able to work due to medical conditions, putting them in a hard position when it comes to paying off debt they’ve actually accrued. Also, when seniors aren’t able to cover their costs, numerous begin to count on grownup kids, this puts an added monetary burden on those in their working years. All in all, high debt tons amongst older Americans bodes poorly for both their families and the economy at huge.
Are you concerned about rising debt levels among seniors?