San Antonio, TX, April 23, 2013 (GLOBE NEWSWIRE) -- A series of recent reports on senior citizens' deepening debt burden has shed some light on a little-reported aspect of the personal financial crisis that has affected so many Americans. If left unchecked, this problem could begin to impact the retirement plans of millions of American citizens and make a significant dent in the current economic recovery. Debt Consolidation USA aims to arm seniors with information to combat rising debt levels that can threaten a comfortable retirement.
These reports point to several parallel trends that combine to paint a worrying picture of the broader economy.
Based on data compiled over the past 20 years, the Economic Benefits Research Institute has reported that the median credit card debt of the typical 75-year-old increased by 110 percent during a recent three-year stretch. That figure now sits at about $1,800.
More disturbingly, the EBRI notes that about a quarter of all 75-year-olds had some mortgage debt in 2010. This marks an increase of more than 120 percent from two decades earlier.
At the same time, nearly 600,000 American seniors have taken out so-called "reverse mortgages" on their existing homes. It has been demonstrated that many reverse mortgage holders fail to understand that these credit vehicles are actually expensive home equity loans. This misunderstanding is likely responsible for a reverse-mortgage delinquency rate that currently sits near 10 percent.
"With a large amount of debt and not enough income to pay all their bills, many baby boomers will have to live with a lower standard of living throughout their retirement unless they act now to get out of debt," says Adam Tijerina of DebtConsolidationUSA.com
Current political trends are liable to exacerbate this situation. Federal lawmakers and executive-branch negotiators have reached a tentative consensus to slow the growth of Medicare and Social Security benefits. This could further diminish the purchasing power of the country's senior citizens and make them more dependent on credit card debt.
In fact, many seniors are already forgoing traditional benefits like Medicare and using their credit cards to cover a growing proportion of their medical expenses. According to AARP, at least half of all senior citizens pay for medical expenses with credit cards.
In addition, the same survey found that more than 20 percent of all seniors use their retirement accounts to cover their mounting credit card bills. Eventually, many of these individuals may require assistance from their children and grandchildren to remain solvent.
To combat this unsustainable situation, Debt Consolidation USA aims to help America's senior citizens with a powerful combination of knowledge, advice and debt relief services.
"We have 100s of personal finance articles that can get seniors and their children and grandchildren talking about their financial situation instead of leaving everyone in the dark until it's too late," says Mr. Tijerina. "The way to improve your financial situation is to talk about it and get help when you are in over your head."
Debt Consolidation USA maintains a comprehensive website that offers debt-fighting tools as well as up-to-date information about credit card debt and personal finance. Seniors who have never worked with a debt consolidation provider should take the time to study the company's fact-filled primers on debt relief methods like bankruptcy, credit counseling, debt consolidation loans and debt settlement.
Seniors who struggle with debt may also use Debt Consolidation USA to learn about state-specific debt relief programs as well as different ways to get out of debt without professional assistance. The company also offers plenty of information about crafting a household budget and assessing the long-term impact of consumer debt.
As the Greatest Generation's credit card bills and medical debts continue to grow, Debt Consolidation USA is committed to providing powerful debt relief services for those who need them most.
Debt Consolidation USA offers debt consolidation company reviews that provide struggling borrowers the chance to reduce their debts in as little as 24 to 48 months. Over the years, the company has helped thousands of Americans in more than three dozen states avoid bankruptcy and foreclosure while achieving their personal financial goals.
Debt Consolidation USA has earned full membership with the U.S. Chamber of Commerce and is a partner of the International Association of Professional Debt Arbitrators.
For more information about the debt relief services that Debt Consolidation USA offers, call 1-877-610-6990 during extended business hours or navigate to DebtConsolidationUSA.com.
Source: National Debt Relief