Debt on rise for elderly

[carzen]

Credit card debt is rising among older consumers, as seniors use plastic to pay for medicine, utilities and food, a habit that can leave them shouldering huge interest payments and grappling with aggressive collection agencies.

All age groups rely more on credit cards, but a new study shows that elders who fall behind on their monthly payments have a hard time repairing their finances. Seniors, especially women, are vulnerable to harassment and scams from collection agents and are seeking bankruptcy in record numbers.

Americans age 65 to 69 have an average credit card debt of about $5,800 - 217 percent more than in 1992, according to a report by the National Consumer Law Center. Local credit counselors say the cost isn't just financial: Debt is emotionally troubling, too, especially for seniors who pride themselves on lifetimes of responsible spending.

"When people call us, oftentimes they're so upset they're in tears," said Joanne Petito, directing attorney for New Hampshire Legal Assistance's consumer law project for seniors. "They're ashamed because they have debt and they can't pay it."


http://www.concordmonitor.com/apps/pbcs.dll/article?AID=/20061009/REPOSITORY/610090308