Seniors and Bankruptcy: America’s Dirty Little Secret
An excerpt:
Interviews that I’ve conducted with seniors have convinced me thatfew of them are making charges to their credit cards willy-nilly. Sohow to explain the increased balances? McGhee and Draut make thefollowing observations: between 1992 and 2001, the retirement wealth ofthe majority of seniors declined; seniors became increasinglyasset-poor; and the cost of health care and housing for seniors roseconsiderably.
When the basic costs of living rise, while income and assetsdecline, something has to give. And what has given is the ability ofseniors to evade credit card debt. This cohort of Americans hashistorically been quite frugal and averse debt, but when there is nochoice, they have few options but to turn to credit cards.
Ed.: Thanks to my former student Nate Hines for sending this along.