Getting out of debt can be difficult for the elderly, and it usually requires a combination of creativity and objectivity to achieve this goal. Here are some solutions your senior loved one may want to consider, brought to you by the staff at Home Care Assistance, a leading provider of in-home care Fort Myers seniors trust.
Create a Budget
One of the most important steps for a senior attempting to get out of debt is creating a budget. Living on a budget can help reduce unnecessary expenses and prevent your loved one from making spur-of-the-moment purchases. This often frees up additional cash that can be used to pay down debt.
Borrow from Retirement Plans
Some retirement plans, such as a 401k, make provisions for borrowing against the cash value. If the funds are not needed to meet your loved one’s ordinary living expenses, it might be wise for him or her to borrow enough money to liquidate debts.
Get a Reverse Mortgage Loan
A senior who has equity in his or her home but is strapped for cash might want to consider a reverse mortgage. Structured properly, this can allow your loved one to stay in his or her home and receive regular, monthly cash payments. Those payments could be used to offset debt.
File for Bankruptcy
When other options fail and your loved one is unable to meet his or her financial obligations, it might make sense to file for bankruptcy protection, especially if your loved one has a large amount of unsecured debt such as credit cards or medical bills. However, filing bankruptcy can negatively affect your loved one’s credit score and the ability to borrow money to meet future financial obligations. Therefore, such a decision should not be taken lightly.
While getting out of debt is a worthwhile goal at any age, a debt-free life can be even more important for seniors. A Fort Myers home care provider can help your loved one save money in ways you might not have thought of. At Home Care Assistance, our caregivers can go grocery shopping based on your loved one’s budget, cook so he or she spends less money on eating out, and keep an eye out for signs of financial challenges. For more information on our senior care services, call one of our qualified Care Managers at 239.449.4701.