Getting out of debt can be difficult for the elderly, and it usually requires a combination of creativity and objectivity to achieve this goal. Here are some solutions your senior loved one may want to consider.
Create a Budget
One of the most important steps for a senior attempting to get out of debt is creating a budget. Living on a budget can reduce unnecessary expenses and prevent your loved one from making spur-of-the-moment purchases. This often frees up additional cash that can be used to pay down debt.
Seniors with cognitive issues that cause them to have difficulty handling finances may also need help with other everyday tasks. If your senior loved one needs help managing an illness or assistance with daily tasks, make sure you choose a top-rated provider of homecare. Dallas Home Care Assistance is here to help your loved one live a happier and healthier life in the golden years. From the mentally stimulating activities in our Cognitive Therapeutics Method to our friendly Care Managers who are available to answer your questions 24 hours a day, we offer a wide array of high-quality at-home care services.
Borrow from Retirement Plans
Some retirement plans, such as a 401k, make provisions for borrowing against the cash value. If the funds aren’t needed to meet your loved one’s ordinary living expenses, it might be wise for him or her to borrow enough money to liquidate debts.
Get a Reverse Mortgage Loan
A senior who has equity in his or her home but is strapped for cash might want to consider a reverse mortgage. Structured properly, this can allow your loved one to remain at home and receive regular monthly cash payments. Those payments could be used to offset debt.
The many tasks involved in helping your loved one handle his or her finances may seem daunting, and the extra worry can take a toll on your wellbeing. Caring for a senior loved one can be rewarding, but it can also be overwhelming for family caregivers who have other responsibilities they need to focus on. For these families, the perfect solution is respite care. Dallas families rely on our caregivers whenever they need time to rest, work, run errands, and even go on vacation.
File for Bankruptcy
When other options fail and your loved one is unable to meet his or her financial obligations, it might make sense to file for bankruptcy protection, especially if your loved one has a large amount of unsecured debt, such as credit cards or medical bills. However, filing for bankruptcy can negatively affect your loved one’s credit score and the ability to borrow money to meet future financial obligations. Therefore, such a decision shouldn’t be made lightly.
Seniors can face a variety of age-related challenges. Though some families choose to take on the caregiving duties, there may come a time when they need a trusted Dallas senior care provider. Families sometimes need respite from their duties so they can focus on their other responsibilities, and some seniors need around-the-clock assistance that their families are not able to provide. Home Care Assistance is here to help. Call one of our Care Managers at (214) 363-3400 to learn about our customized in-home care plans.