Grandparents and Credit Card Debt

Are your grandparents using their credit cards more than usual? According to a new study released by Demos details the chilling effects this economy has had on our senior citizens. While the college grads are struggling to find their first job in the real world, and parents are struggling to keep food on the table, our grandparents are using their credit cards more than any of us for the essentials.

Low- and middle-income consumers 65 and older carried $10,235 in average card debt last year, up 26% from 2005. Card debt for all borrowers surveyed rose 3% during that time, to $9,827. (USA Today)

And, to heat up this conversation, this health care crisis that we find ourselves in is to blame for most of the credit damage done to seniors. Our grandparents are using their credit cards for groceries, gas, and ridiculous medical bills that Medicare can’t cover.

While the cost of living is rising dramatically, Medicare and Social Security just isn’t able to keep up, and it’s our grandparents that are suffering. From 1997 to 2007, our grandparents were falling deeper into debt than any other demographic in the country, and that was before the recession hit. Today they are deep in debt and deep in trouble.

"You see a great increase in credit card debt for people right near retirement age," says Craig Copeland, a senior research associate at EBRI. "They're probably still working, but they're also the most likely to become disabled," which could force them to rely on credit cards. (USA Today)

There are two huge problems with this situation. First, who is going to be left to pay off this insurmountable debt when the grandparents are gone? Probably their remaining loved ones, which will only put more financial strain on the family.

Second, interest rates are at an all time high for credit cards right now, averaging near to 20%! These rates will continue to rise until the new legislation kicks in that gives debt holders more options when credit card companies want to raise their rates.

For more information on credit card debt, visit http://www.yourdebtnegotiator.com.