Monterey, CA Older Americans Getting Deeper In Credit Card Debt

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The recession has taken a terrible toll on all of us, but it's been particularly difficult on many seniors, particularly those which rely mostly on Social Security.  CPI increases just haven't kept pace with the cost of living on the Monterey Peninsula, one of the most expensive places in the country to retire.   Unfortunately, many seniors have turned to credit card debt to fund their day-to-day expenses during the recession.  A study commissioned by the American Association of Retired Persons and conducted  by Demo's, a liberal public policy organization, pointed out that last year, the low and middle-income population over the age of 50 had an average credit card debt of $8,278 compared with the younger population of $6,258.  Thankfully, the older age group has been able to reduce balances by 16% since 2008, however, they did so at a much lower rate (37%) than those under 50.  "Older Americans Living on a reduced income and feeling strapped for money will likely turn to credit cards as a way to make ends meet," Gail Cunningham, vice president of the National Foundation for Credit Counseling, told USA Today.  "Credit should be used as a convenience, not as an additional paycheck."  That's easier said than done when you are on a fixed income and your monthly expenses are soaring.  In 2011, 33% of Americans who went to a credit counselor were 55 or older, up 7% from 2009.  We see this every day at Hands To Help Seniors.  Please support our mission by clicking on the Donate button above.

Please note that this blog reflects my personal opinion and may or may not reflect the opinion of Hands To Help Seniors and the individual members comprising the Board of Governors.