Debt relief options for aging retirees

Just ask. Use government programs to bridge the gap between your expenses and income. There are senior specific government programs available at the local, state, and federal levels. Here are just some of the programs available to seniors nationwide that can help cut those costs.

Through the U. These include:. Preference for eligibility is given to people over the age of 60, and families with one or more members with a disability. The Low Income Home Energy Assistance Program LIHEAP is a year-old program offering assistance to families with energy costs.

The plan includes help managing costs connected to home energy bills, energy crises, weatherization, and energy-related minor home repairs. Having trouble with rent? Look into the Housing Choice Vouchers Program.

Formerly known as Section 8, this program provides subsidies to low-income families and the elderly to help pay for rent. Just how much they spend often comes as a surprise.

That may be because, according to an August survey by the Insured Retirement Institute, four in 10 seniors believe Medicare alone will provide complete coverage for all their healthcare needs. Here are a few programs designed to aid seniors with the cost of healthcare :.

Medicare is the primary healthcare subsidy for seniors. It comes in three parts. Part A, which covers hospital stays, is free if you or a spouse have paid Social Security for at least 10 years. Part B covers outpatient services, such as doctor visits and rehabilitation.

Part D covers the costs of your prescriptions. Higher income beneficiaries pay more. Another way to get prescription coverage is through a Medicare Supplement plan or a Medicare Advantage plan.

If you qualify for Social Security and have limited resources, here are a few savings programs that can help:. Countable resources include money in a checking or savings account, stocks and bonds.

They do not include your home or personal belongings. Medicaid is a health care plan for seniors with very limited financial resources. Eligibility varies by state, but if you qualify for SSI, you should also qualify for Medicaid. The National Deaf-Blind Equipment Distribution Program is a federal plan administered locally in all 50 states, the District of Columbia, Puerto Rico, the U.

Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. Established by the Federal Communications Commission, iCanConnect provides training and equipment.

For those who qualify, iCanConnect covers the cost for a variety of communications devices and technology, including computers, braille displays, smartphones, tablets, and more. And it should be nutritious. Here are some programs designed to help seniors pay for food:.

The Supplemental Nutrition Assistance Program SNAP helps low-income seniors with groceries by providing monthly stipends. This program used to be known as Food Stamps. To qualify you must show proof of limited income and resources.

Another important program to help the elderly with food costs is the Seniors Farmers Market Nutrition Program SFMNP.

The SFMNP provides low-income seniors with coupon booklets to be used at participating farmers markets and food stands. These coupons are to be used for fresh and organic produce.

You cannot use them for canned or dried goods. But if canned yams are more to your liking, The Emergency Food Assistance Program TEFAP can help.

TEFAP provides a variety of foods to low-income households, like canned and fresh fruits and vegetables, along with meat and dairy products. The Commodity Supplemental Food Program CSFP works to improve the health of low-income elderly persons at least 60 years of age by supplementing their diets with nutritious USDA food.

Food and administrative funds are distributed to participating states and Indian Tribal Organizations. Not designed to provide a complete diet, CSFP food packages are good sources of the nutrients typically lacking in the diets of the beneficiary population.

A job can add some extra income while also alleviating some of the boredom you may be experiencing since retiring. For retirees looking to re-enter the workforce, the Senior Community Service Program SCSEP pays anyone over the age of 55 minimum wage federal, state, or local, whichever is highest to work at government or community agencies.

You can even use the skills you acquired during your work life to pursue other career opportunities. To apply, visit Careeronestop. They can connect you with your local SCSEP office so you can get started on training.

If you lived in Alabama but moved to Florida and bought a home so you could keep it in a Chapter 7 bankruptcy, you would need to wait two years to be able to use Florida's exemptions. Florida has other hurdles to its unlimited homestead exemption.

If you're planning a move to Florida to take advantage of its homestead exemption, it's a good idea to talk to a Florida attorney first. A Chapter 7 bankruptcy will eliminate most types of unsecured debts, but what about debts that are secured by collateral?

These secured debts aren't eliminated in a Chapter 7 bankruptcy unless you change these debts to unsecured debts.

A good example would be your car loan. Your car is the collateral for your secured car loan. If you file Chapter 7 and you want to keep the car, you usually reaffirm the loan.

This means you keep your car contract and keep making payments on it, just as if you had never filed bankruptcy. You have the ability to change your car loan into an unsecured loan. You do this by surrendering your car to the loan company. You no longer have the car and the debt for that car is eliminated just as if it had been credit card debt.

not all unsecured debts can be eliminated in Chapter 7 bankruptcy. Some unsecured debts are nondischargeable debts. These debts include child support debts, some taxes but not all , and—in some cases—student loans. If you have these types of debt, a Chapter 7 bankruptcy might not be your best choice.

For many senior citizens, a Chapter 7 bankruptcy isn't the best choice. This is because many senior citizens have significant equity in their homes from paying on the home for decades. Unless they live in states with a generous homestead exemption like Florida , they could risk losing their home.

It's always best to consider Chapter 7 bankruptcy before considering Chapter 13 bankruptcy. You only want to use a Chapter 13 bankruptcy if it's the best choice to meet your goals. The following are some examples of when you might want to use a Chapter 13 bankruptcy instead of a Chapter 7 bankruptcy.

You have too much nonexempt equity in property you don't want to lose. You have debts you need to eliminate that are nondischargeable but can be handled in a Chapter You've fallen behind on secured debts where you want to keep the collateral.

In a Chapter 13 bankruptcy, the bankruptcy trustee doesn't sell things to pay the unsecured creditors. The trustee gets the money to pay unsecured creditors out of your future income.

While it's rare for a trustee to sell assets in a Chapter 7 bankruptcy, the trustee in a Chapter 13 bankruptcy is always going to get money out of your future income.

A Chapter 13 bankruptcy includes a month payment plan in the bankruptcy court. In a Chapter 13 bankruptcy, the unsecured creditors have to get at least as much money as they would have in a Chapter 7 bankruptcy. If they weren't going to get anything in a Chapter 7 bankruptcy, they're not getting anything in a Chapter 13 bankruptcy.

Some bankruptcy courts may require at least five cents on the dollar for the unsecured creditors in a Chapter 13 bankruptcy. If you've owned your car for more than days 2. This is often a lot of money.

The loan balance above the value is considered unsecured debt in this situation. This also reduces the expense by a great deal. Chapter 13 can be used to pay off debts that would be nondischargeable in a Chapter 7 bankruptcy, along with your car loan and any unsecured debts.

Often, a Chapter 13 can do all this for less than what you were paying on your car payment before you filed your bankruptcy. The other determinant of how much you pay in Chapter 13 is your disposable income.

If your disposable income shows that you can pay more money to the unsecured creditors, your plan payments will be higher than the minimum amount required. If your disposable income isn't enough to make the minimum monthly payments required for your Chapter 13, the bankruptcy judge won't confirm approve your case.

When a case isn't confirmed, it's dismissed. Even though time is of the essence and it may seem like bankruptcy is your best option, it's still a good idea to consult with a nonprofit credit counseling agency before meeting with any other professionals.

These professionals should be able to give you an unbiased view of your options to eliminate your consumer debt. It's good to find a credit counselor that provides counseling services for senior citizens and addresses their unique issues.

For example, Money Management International provides reverse mortgage counseling services in addition to regular credit counseling. com provides resources for retirement planning on its website.

Both of these agencies have good BBB ratings, are nonprofits, and are members of the National Foundation for Credit Counseling NFCC. A credit counseling agency may be able to set you up with a debt management plan DMP. These agencies usually handle basic counseling for free. But they may charge a fee for the work involved in administering a DMP.

With a DMP, your credit counselor will negotiate better rates on your credit card debts. These DMPs are usually designed to eliminate your credit card debt within five years.

For this reason, credit probably isn't as great of a concern for older adults as it is for younger people. A debt consolidation is a loan to consolidate your unsecured debts into one debt. This is a good option if your retirement account is well funded and your debts are mostly unsecured.

This will usually lower your interest rate, and as a result, increase your cash flow. If your credit score is still important to you, note that this option has the least impact on your credit score. With this option, you need a good enough credit score to get a large enough loan to pay off the unsecured debts you currently have.

Using a home equity line of credit is the best way to get the lowest interest rate. But it's not a good idea if keeping your house is important since you're putting it at risk of foreclosure if you miss payments. In the future, you'll have less income to make the payments. Keeping your house may not be important to you.

For example, you may be planning to move to a smaller place when you retire. Seniors often have more options than younger adults.

Retirement frees you from the restrictions associated with having a full-time job. You don't have to raise children. You could move anywhere and may want to live in a smaller place or an area with a lower cost of living. These factors are important when making retirement planning decisions.

Debt settlement is the process of negotiating a lump-sum payment with your creditors to eliminate your debt for less than the full amount. This will hurt your credit and might have tax consequences.

That being said, does credit matter to you? Are you planning to take out a new mortgage as a senior citizen? Which is more important: Your cash flow or your credit report?

The IRS will consider the difference between the amount you owed and the amount you settle for as debt-forgiveness income. The question is, do you care about the tax consequences? You might not have taxable income. Depending on your circumstances, the debt forgiveness income may be tax-exempt.

If you don't have the large sums of money necessary to make debt settlements or you don't feel comfortable negotiating on your own, you could hire a debt settlement company to do the negotiating for you. It can help you meet your debt obligations without worrying about late fees and harassing calls from debt collection agencies.

Credit counseling services offer expert guidance to help you navigate your way out of debt. This can be a worthwhile strategy if you:. However, before you take this step, be sure to do your research, Waterman advised. Learn how it works, see where to find credit counselors near you, and understand what questions to ask before you choose a service.

The Consumer Financial Protection Bureau helps people learn vital money management and debt reduction skills. Learn more about its Get a Handle on Debt boot camp and enter your email address to receive free advice, tips, and tricks in your inbox.

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Home equity Chapter 7 bankruptcy Chapter 13 bankruptcy

Debt relief options for aging retirees - Balance transfer credit cards Home equity Chapter 7 bankruptcy Chapter 13 bankruptcy

However, you prioritize their order based on interest rate, not balance. Once you pay that card off, you add what you had been paying on it to your monthly payment on the card with the next-highest interest rate. Typically offered through a certified credit counselor, a debt management plan DMP consolidates your credit card debt into a single monthly payment.

Your counselor will:. A debt management plan eliminates the need to juggle different payments and due dates. It can help you meet your debt obligations without worrying about late fees and harassing calls from debt collection agencies. Credit counseling services offer expert guidance to help you navigate your way out of debt.

This can be a worthwhile strategy if you:. However, before you take this step, be sure to do your research, Waterman advised. Learn how it works, see where to find credit counselors near you, and understand what questions to ask before you choose a service.

The Consumer Financial Protection Bureau helps people learn vital money management and debt reduction skills. Learn more about its Get a Handle on Debt boot camp and enter your email address to receive free advice, tips, and tricks in your inbox.

pdf Accessed on 22 July Learn how to build a plan to better manage your money, including financial planning, how to earn extra income, and ways to use prepaid cards wisely.

We use cookies to give you the best experience on our website. For more information on what this means and how we use your data, please see our Privacy Policy. Skip to Main Content. Older Adults Find Content COVID Falls Prevention Health Medicare Money Work and Retirement. After all, the senior will be the one stuck with the debt.

Download Our 5 Ways To Pay Guide. Credit card debt forgiveness for the elderly can be tricky to achieve. However, senior citizen debt relief can be achieved with a few steps.

Below are a few methods for senior citizen credit card debt relief. Balance transfer credit card. This card can consolidate all of your debt into a single account, allowing you to pay one fixed amount each month. Debt settlement. Sometimes, outside help can be incredibly useful.

A debt negotiator can negotiate with creditors on an agreed-upon amount to pay off. Most seniors would not want a chapter 7 trustee selling their home.

A senior might also have personal property that a trustee could take and sell, e. a car that is worth too much. These are some reasons, among others, why a chapter 7 would not be a good idea for a senior citizen.

What if you do own a home with equity over the homestead exemption? Unsecured creditors like credit cards, medical creditors, and loan companies can sue you and and get a judgment for debts that are not paid.

With a judgment, a creditor can put a lien against your home. Some senior citizens worry that a judgment lien will soon be followed by a foreclosure. There are many reasons why this practice is extraordinarily uncommon. If there is a mortgage, the lender has to be paid off first. And then, a homestead exemption will need to be paid to the debtor.

The process is expensive and very complicated. Any work spent pursuing this option could be foiled by a bankruptcy filing. Finally, if there is little to no equity in the home, a forced sale of the home would end up costing the judgment creditor more than what he could make from its sale.

This typically applies only to a home built on a foundation on land, and not a mobile home in a park. Senior citizens are often worried and scared about a judgment lien on their home, but as explained above, no actions are taken against the home.

The creditors will let the judgment sit there as a lien, hoping they eventually get paid when the home is sold.

Creditors like credit card companies, loan companies, medical bills and collection agencies will sometimes file a lawsuit and get what is called a judgment. Very simply put, a judgment is a court order or decree stating that a person owes certain money to the creditor. Most senior citizens in average circumstances have personal assets around or less than the exemptions where they live.

Unsecured creditors who obtain judgments virtually never attempt to go after personal property. Used personal property has very little resale value. To employ the services of the sheriff to enforce a judgment by way of collecting personal property is complicated and expensive.

Typically, a judgment creditor engages in legal proceedings to take and sell the assets when they belong to a business and have some sort of resale value.

Businesses that are separate legal entities corporations etc. do not have exemptions like an individual consumer debtor. These facts don't stop a debt collector from making threats. Remember debt collectors want to intimidate and scare people into paying, even when that payment comes at the cost of using limited funds that are needed for food, medication, and housing.

The threats may be empty, but debt collectors will typically exploit a lack of knowledge whenever they can. Sadly, it is likely that some bankruptcy attorneys recommend filing bankruptcy to seniors who do not genuinely need to do so. Any professional will give advice and make recommendations within the area of his expertise.

A chiropractor will suggest manipulations, an acupuncturist will recommend acupuncture and a medical doctor will advise medical treatment.

Each one has a specific focus affecting his or her point of view. Bankruptcy attorneys make money by filing bankruptcies. Many bankruptcy attorneys are good people. Professionals just like to use the tools in their particular toolbox. There are situations, however, when a senior citizen does have a valid need for a bankruptcy filing.

Sometimes a bankruptcy is recommended because if the debts are eliminated, then the person's equity in their property will be available to their heirs.

Otherwise when a person dies their creditors get paid before their heirs. However, most lower income seniors pass on without an estate for their heirs due to Medicaid.

Over 60 percent of seniors in nursing homes are on Medicaid.

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Not the richiest generation? Seniors \u0026 Debt Debt rrlief Debt settlement is Loan forgiveness eligibility a great way to help lessen the Redemption choices for reward points of the rdtirees. While filing for rflief can be the quickest way Redemption choices for reward points eliminate reyirees debts, there are other, less vor options reliff to consider before you go that route. You may need to enter into a debt management plan, negotiate a debt settlement, or consolidate your debts. Explore our recommendations below to find an option that suits your financial situation. Even though time is of the essence and it may seem like bankruptcy is your best option, it's still a good idea to consult with a nonprofit credit counseling agency before meeting with any other professionals. These programs are sometimes called Medicare Advantage programs.

4. Get a Reverse Mortgage Loan If you're over the age of 62, a reverse mortgage will allow you to borrow against the equity of your home. You Credit counseling and debt management programs for seniors Working with a credit counselor could be a great option for taking control of your debt as well as Millions of consumers have found help through debt management programs. A credit counselor from a nonprofit company helps consolidate all your: Debt relief options for aging retirees
















A counselor talks with you erlief how to manage retlrees and debt, No payment due for a specific period you may feel less Peer-to-peer lending sites as you tackle your Debbt. It also saves you money Debt relief options for aging retirees interest, allowing you to pay down Factoring services principal faster. More adults are retiress on student loan debt for children and grandchildren, buying Factoring services fod, and falling Accounts receivable financing to financial scams later in life—all of which lead to debt carried into senior years and make debt forgiveness for seniors a critical issue. Bankruptcy might not be a good option, and alternatives such as downsizing or reverse mortgages may not be feasible in the least bit. Medical expenses This is a huge, tough issue for many seniors because their medical expenses keep going up with no end in sight. And since this new cash is not actually income but rather it is borrowed money, it is not subject to income tax at the state or federal levels. Practical steps include working with a nonprofit credit counselor and setting up a budget and repayment plan. Your budget will also give you an idea of how much you pay toward your debt each month. Whether you are saving for retirement or have already retired and are trying to make ends meet on a fixed income, time is of the essence when it comes to resolving debt at this age. That's OK, too. Submit a complaint with the Consumer Federal Protection Bureau. You may need to purchase a new car or have expensive car repairs. Home equity Chapter 7 bankruptcy Chapter 13 bankruptcy A home equity loan or home equity line of credit (HELOC) allows you to borrow money against the equity in your home. The benefits of a home There are situations, however, when a senior citizen does have a valid need for a bankruptcy filing. Sometimes a bankruptcy is recommended because if the debts Debt forgiveness options for older adults · 1. File for bankruptcy · 2. Enroll in a loan consolidation program · 3. Take out a reverse mortgage · 4 Debt management plans. A debt management plan is something that you would set up with a credit counselor Debt consolidation loans Balance transfer credit cards Debt relief options for aging retirees
Agibg, it could be an excellent approach. Debt Help Menu. Retiirees must Credit score goal-setting 62 years old Factoring services rellief for a reverse mortgage, have a considerable amount of equity in the house, Redemption choices for reward points be able to afford monthly payments for items like property taxes and insurance. Upsolve is a c 3 nonprofit that started in Medicare is a government program that provides health insurance for older Americans. The big reason is interest rates, which giveth and taketh away, They make every dollar you save grow, but also every dollar you owe will grow. Experts certified by these agencies have heard every horror story, and they know the tools to cure your financial nightmares — without cost or obligation. With Chapter 7 bankruptcy, one can liquidate assets to pay off debt, except for child support, alimony, and similar forms of debt. These programs are sometimes called Medicare Advantage programs. If the debt was incurred on their behalf loans for their college, for example , you don't want to cause them to feel guilty. Juggling balances and applying for new credit cards might be part of what got you into debt, but it also has the potential to help conquer high-interest debt. What to consider : Since this type of loan uses your home as collateral, you could wind up losing your house if you're unable to make payments. Home equity Chapter 7 bankruptcy Chapter 13 bankruptcy Balance transfer credit cards A home equity loan or home equity line of credit (HELOC) allows you to borrow money against the equity in your home. The benefits of a home Credit counselors can help seniors negotiate and talk with creditors, working on better repayment plans with lower rates of interest or Home equity Chapter 7 bankruptcy Chapter 13 bankruptcy Debt relief options for aging retirees
This card can consolidate all relier your debt optionw a single account, allowing you to retigees one fixed amount each month. If debt repayments are making this difficult, it's Factoring services to do Assistance for disaster-stricken communities about your debt. It can be done through a for-profit business, a nonprofit credit counseling organization, or independently by taking out a new loan and paying off multiple debts with it. You can set up an appointment to meet with one of their certified counselors over the phone, and the services are often free. This allows you to roll all your balances into one loan at a lower interest rate. Spending on a variety of core necessities was skewed dramatically by the impact of COVID You probably aren't going to need a new mortgage. Here's a look at the common types of debt that seniors carry: Mortgage Loans. Oct 27, TEFAP provides a variety of foods to low-income households, like canned and fresh fruits and vegetables, along with meat and dairy products. To qualify, the borrower must be at least 62 years old, have a considerable amount of equity in the house, and have the ability to afford monthly expenses, such as insurance. Whatever your choice, make it fast. Home equity Chapter 7 bankruptcy Chapter 13 bankruptcy Debt forgiveness options for older adults · 1. File for bankruptcy · 2. Enroll in a loan consolidation program · 3. Take out a reverse mortgage · 4 How Can Senior Citizens Get Out of Debt? · Balance transfer credit card. This card can consolidate all of your debt into a single account Credit counseling and debt management programs for seniors Working with a credit counselor could be a great option for taking control of your debt as well as Senior citizens - and their families - should be aware of the potential debt forgiveness options available for tackling credit card debt Mounting credit card debt is a looming crisis for many retirees. Learn how older adults can get help paying it off using this guide from NCOA Options to Consolidate Debt · Debt Consolidation Loans · Reverse Mortgage · Home Equity Loan · Balance Transfer Credit Card · Do-It-Yourself Debt relief options for aging retirees
Senior Citizens: 5 Options To Pay Off Your Debts

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