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To: RealMuLan who wrote (48407)	4/11/2004 3:41:04 PM
From: RealMuLan	Read Replies (1) \| Respond to of 74559

More senior citizens confront bankruptcy, credit card problems BY HANK EZELL THE ATLANTA JOURNAL-CONSTITUTION ATLANTA - More and more elderly Americans are relying on plastic to pay for their golden years. The average credit card debt among people 65 and older has risen substantially, and more senior citizens are declaring bankruptcy. "It's hugely embarrassing to most of the elderly people we talk to," said Susan Hunt, regional counseling manager for Consumer Credit Counseling Service of Greater Atlanta. "They've prided themselves their whole lifetimes on working hard and taking care of themselves," Hunt said. "Now they are not able to do that anymore." But they need not feel alone. The average credit card debt of persons over 65 was $4,041 in 2001, according to a study from Demos, a public policy group. In 1992, the average was $2,143. The numbers are adjusted for inflation. Among those with incomes under $50,000, one in five families was in "debt hardship." That means they spent more than 40 percent of their income on debt payments, including mortgages. In 2001, 82,207 people 65 and older filed for bankruptcy. That's 244 percent higher than the total for 1991. A number of factors are involved, but it's basically a matter of easy credit and hard times. "There was in the past less use of credit cards by seniors," Hunt said. "Now there's more. They want to be financially sound, but don't know how they're going pay for their medicines if they don't use a credit card this month." The counseling service's clients of all ages are in worse shape than a year ago, said spokeswoman Gay Watson. Credit card debts are bigger, and many have depleted their assets through refinancing or home equity loans. Increasing medical costs are a major reason, but not the only one, for the problem. "They may have lost a spouse, and that has significantly reduced their income," Hunt said. "Then there are increased living expenses. Often there are questions of home maintenance, things that they can't do for themselves anymore." For many, supporting children or grandchildren can run up expenses. Divorce and job loss can play a role. omaha.com