Golden Debt Years
The Golden Years might not be so “golden” anymore, especially because of debt. More and more often, older Americans are retiring to soaring medical care expenses, high credit card balances and the stress of second mortgages, making retiring to a “life of luxury and relaxation” a distant dream instead of a promising reality.
In an article published in The Miami Herald, “More seniors Head into the Golden Years with Debt,” outlines the daily struggle of current retiring Americans. Specifically, the fact that the baby boomer generation will retire with more mortgage and credit care debt than any previous generation had at the same time.
It’s scary to think about but the amount of debt that keeps piling up. Not to mention, trying to get rid of debt on a fixed income or having to keep up with payments after your savings account has all but disappear thanks to an unexpected medical expense.
In an unsurprising move, many retirees have either forgo retirement completely or they have been forced to return to work during retirement.
The Great Recession, however, has made it all but impossible to sustain a comfortable living. As the article notes, “job growth is slow and salary increases minimal.”
In the end, retirees end up working more for less, which means they have less time to enjoy the retirement they worked so hard in their younger years.
An AARP-sponsored study, released last January, disclosed that Americans 50 years of age and older had an average balance of $8,278 in credit card debt, combined, compared to $6,258 for Americans under 50. In 2007, when most age groups paid down their credit card balance, the over-75 generation’s credit card balances rose from 18.8% to 21.7%.
It’s incredible to see how something that was once so cherished is becoming a daily nightmare for some retirees, especially for those older than 75. It’s a horrible feeling to retire and then have to come back into the job market.
A reverse mortgage can be the solution older Americans are looking for. With a reverse mortgage, retirees can take out a lump sum to cover their credit debt, or put it all away in a line of credit, or receive equal monthly payments for a fixed period. There are many options available under the reverse mortgage program in order to supplement your retirement.
If you are 62 years of age and older, live in your primary residence and have enough equity in your home, you can apply for a reverse mortgage. New changes are coming to the program so it’s crucial not to wait!!!
Retirement should be about relaxation and finally doing what you want to do, not working to pay debts.
At PS Financial Services, we aim to match the best lender to the right client. If you think a reverse mortgage is right for you or simply want more information, let us know at (888) 845-6630 or via email at info@PSReverseMortgage.com. We do not pressure those who inquire, we are simply here to help.
Click here for more information about the elimination of the reverse mortgage program as we know it: