Older people are affected by the stress of the recession just as much as younger people. A good deal of them can\’t work on account of physical and mental fragility, but still live in homes with mortgages. Some may have maxed out credit cards, but with no employment and minimal help from Medicare, social security checks, and retirement funds there seems to be little they can do.
There are a good deal of options for older people to consider. One is to lower the interest from credit cards. Lowering the interest rate to 10 percent from 30 percent will free up about 200 dollars a month. In order to get the rate lowered, you should call the credit card issuer and make a request. If a bill has been paid on time and there are extenuating financial circumstances, there is a plausible chance that the creditor will lower the rate. It\’s a good idea to have a payment in mind when you call. It\’s always better to bring a lower payment plan to the playing field.
Professional intermediaries could be a good help. Credit counseling agencies or attorneys can negotiate a lower interest rate on your behalf.
If you do not already have one, look for an attorney, one with experience in bankruptcy would be best. This way you can get to know all of your options. Bankruptcy can absolve you of much of your debt, but it also affects your credit rating for ten years, rendering you virtually unable to obtain a car, place of residence or even a job in some cases.
One final thought is that it is never a good idea to just walk away from credit card debt. Walking away would mean collections actions, summons, lawsuits or eventually having the debt turn into taxable income. In today\’s economy it is essential that you protect yourself and your assets. When collectors call, it is always wise to handle business.
Mallory Megan is employed by a debt collection company. She also writes stories on the credit industry, business and finance, and debt collection.
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