MORE ELDERS RELY ON CREDIT CARDS TO SURVIVE

May 1, 2004

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More and more elderly Americans are relying on plastic to pay for their golden years.

The average credit card debt among people 65 and older has risen substantially, and more senior citizens are declaring bankruptcy.

“It’s hugely embarrassing to most of the elderly people we talk to,” said Susan Hunt, regional counseling manager for Consumer Credit Counseling Service of Greater Atlanta.

“They’ve prided themselves their whole lifetimes on working hard and taking care of themselves,” Hunt said. “Now they are not able to do that anymore.”

But they need not feel alone. The average credit card debt of persons over 65 was $4,041 in 2001, according to a study from Demos, a public policy group. In 1992, the average was $2,143. The numbers are adjusted for inflation.

Among those with incomes under $50,000, one in five families was in “debt hardship.” That means they spent more than 40 percent of their income on debt payments, including mortgages.

SOURCE: THE ATLANTA JOURNAL-CONSTITUTION