Did you know that baby boomers have more credit card debt than young people with an average balance of $8,278? According to a recent AARP report, the major causes were medical expenses, car/home repairs and basic living expenses. Loaning or giving money to family members at the expense of their own well-being was also mentioned. Another by-product of the recession, seniors relied heavily on credit cards to keep things afloat when their retirement funds and home values declined.
Instead of panicking, doing something drastic or giving up altogether, take a deep breath, gather up your expenses as well as your income and develop a plan.
While there are many philosophies on how to get out of debt, most experts will agree that you need to stop incurring more debt and stop needless spending. DO NOT give money to others that you don’t have.
Not sure how to get started eliminating your debt? Use these handy tips.
- Create a spending diary to see where you’re actually spending your money.
- Identify sources of income even if it means taking a part time job or getting a roommate.
- Create a budget and stick to it.
- Look for ways to cut your expenses such as cooking at home or using coupons.
- Prepare for emergencies by building an emergency fund that way you don’t incur more debt.
- Sell some or all of your future payments from a structured settlement, annuity, life insurance policy etc for a cash lump sum payment. Use the payment to pay off your high interest debts.
- Sell unwanted items such as books, clothes, crafts, jewelry, toys etc.
- Reuse or repurpose items when possible.
- Always pay more than the minimum payment on your debt.
- Do not sign up for debt elimination services. Instead go to www.aarp.org/debtchallenge to find reputable help.
AARP has some very useful tools to help seniors get out of debt. Visit their website at http://www.aarp.org/money/budgeting-saving/info-07-2010/print_financial_pubs.html for other resources.
If you’re looking for ways to get out of debt and are interested in learning more about selling your future payments, give CBC Settlement Funding a call today at 877-386-3377.
