Seniors Are Drowning In Debt

The amount of debt owed by people age 65 or older has significantly increased in recent years. In 2000, 59% of older households carried debt, up from 34% in 1992, according to SRI Consulting Business Intelligence. In 1992, retirees owed an average of $8,000--that number nearly tripled in 2000 to $23,000(Bankrate.com April 3).

Debt is a part of everyday life. Today's retirees owe on houses, cars, and on credit cards. Others simply haven't saved enough for retirement. Almost half of all seniors with debt carry credit card balances.

Some of a senior's debt is the result of living on a fixed income. Prices go up on almost everything, but income doesn't . Another key factor is medical expenses. A lot of seniors are using credit cards to pay for prescriptions and doctor bills.

The best advice for retirees with high credit card debt is to stop charging, stick to a budget, shop around for a better credit card deal such as at your Credit Union, consider working part-time, and pay for as many big purchases as possible before you retire.