New Jersey residents may be interested in learning about cases in which the elderly have accumulated a large amount of credit card debt. For example, an 84-year-old woman owed approximately $25,000 in credit card debt and had a $125,000 reverse mortgage on her home. Although she was struggling with debt, her only income was $972 a month in Social Security benefits. In addition, she was relying on payday loans in order to supply her with cash in between her monthly checks because her credit card bills and fixed monthly expenses were eating up all her income.
Many people who are working may find $25,000 in credit card debt difficult, but not impossible to pay off. However, those on fixed incomes who owe a significant amount of money on their credit cards may find themselves caught in a pattern of debt that is spiraling out of control. Check cashing loans are lethal, because they are taken out at very high rates and must be paid when their next check comes in. Unfortunately, this cycle of lending and paying back often becomes very hard to break. Those caught between credit card debt and check-cashing loans often find themselves with increasing debt.
One method of paying down credit card debt is to raise cash. People in such a position may want to consider selling items of value in their home, or they can return things that were recently purchased on their credit cards. They may also find renting rooms in their homes a viable option as far as raising additional cash is concerned.
Credit card debt can accumulate very quickly, and those who struggle with it may find it painfully obvious that they are no longer in control. Bankruptcy attorneys may be able to help by offering options regarding protection under the law.
Source: FOX Business, “Elderly Mom Racks Up Card Debt, Check-Cashing Loans“, Sally Herigstad, September 25, 2013