There seems to be a common misconception that people will have fewer financial worries as they get older. Retirement and collecting Social Security checks at one point in time used to be a period of bliss in people’s lives. Today, many seniors find themselves under massive debt where the only solution is to file for bankruptcy.
One study has found senior citizens have filed for bankruptcy at much higher rates than in past decades. This is true in Tennessee and many other states around the country. It is vital for people to be aware of these newfound dangers so that they can protect themselves and their parents.
What is the reason for the increase?
There seem to be a couple of different explanations for these new heartbreaking circumstances. One primary reason appears to be the fact the same safety nets that were in place decades ago are no longer viable. In the past, people could depend on Social Security to pay for everything from food to medications. Due to inflation in many industries as well as the stagnation of Social Security checks, seniors frequently find themselves in situations where they need to choose between one necessity and the other.
The increase in seniors filing for bankruptcy is also, in part, due to the rise in health care costs. Many seniors have to pay for their health insurance out-of-pocket. Even with health insurance in place, the co-pays can rack up, and many individuals find themselves in massive amounts of debt when they should enjoy their golden years.
Is bankruptcy the only option?
Any seniors who find themselves in these precarious situations need to assess the benefits of filing for bankruptcy. Many people have taken control of their financial futures in this way, and it is preferable to alternatives. Paying for medical services with credit cards can start a vicious cycle of debt seniors may not be able to get out of. Seniors need to know all their options so that they can start enjoying retirement.