Title: Credit Card Debt & Age: What Happens When Seniors Can't Pay?
Headings: Credit Card Debt and Age: What Happens When Seniors Can No Longer Pay Their Debts?
Credit Card Debt and Age: What Happens When Seniors Can No Longer Pay Their Debts?
Many seniors must use credit cards to make ends meet
Is credit card debt inherited?
What options do seniors have to help them manage their debt?
Getting help from family members
Refinancing an existing home mortgage
Take out a home equity line of credit
Apply for a reverse mortgage
The sale of assets
Utilizing a debt relief company
Do you qualify for debt consolidation?
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Content: In addition, moving debt from an unsecured position to a secured position late in life is probably not in the best interest of the estate. Seniors should engage in frank conversations with their loved ones about their estate and any legal and financial decisions they make late in life. This can help seniors avoid making mistakes that could have long-term financial impacts. Take out a home equity line of credit
If a senior has owned his or her home for a long time, or owes less than it is worth, another option is to take out a loan against the home’s equity. These home equity lines of credit (HELOC) allow a borrower to tap into the equity in the home on an as needed basis. Generally, these loans are at a low interest rate, so paying off credit card debt with the proceeds of such a loan seems like a good idea. The payments on the debt will certainly decrease, but again, if nothing changes in the way of income and expenses, credit card debt could begin to accumulate once more. In addition, the credit debt would move from an unsecured position to a position secured against the home. This could affect the total liquid assets of the estate in a negative way. If things deteriorate, this could also place the home in jeopardy of foreclosure.