Many assume that consumers who get into trouble with debt and bad credit are younger. But the recession has meant that more older Americans nearing retirement age are being forced to file for bankruptcy.
According to USA Today, bankruptcy rates among the elderly have skyrocketed over the past few years. Comparing data from 1991 and 2007, bankruptcy filings for those 65 and older jumped 150 percent, with a massive 433 percent spike in the 75-to-84 range; and that was before the worst times of the recession.
“I see more and more people who should be enjoying their golden years,” Jason Buckingham, a bankruptcy lawyer in Benicia, California, told the news source. “Instead, they are in bankruptcy court because they have more debt than they can handle.”
The news source reports that over two-thirds of those filing for bankruptcy did so because of credit card debt. Often, this subsection of the population is facing expenses like medical bills, unemployment and helping their children. They assume that they can buy their way out of trouble with credit, but end up ruining their credit history in the process.
Older consumers who are considering taking on a new financial application like a car loan may want to use a car payment calculator so that they can ensure that they are able to handle the expenses.