Managing Senior Debt
Managing debt for seniors is never an easy task. As of 2016, the median total consumer debt of households headed by someone 65 or older is $31,300, 2½ times what it was in 2001. Medical debt seems to be the most significant portion of many senior’s economic well-being, with 84% coping with at least one chronic condition. As seniors age and eventually, pass away, one concerning question remains: what will happen to our debt?
What Happens to the Deceased’s Debt?
Laws regarding debt after passing are different for each state, so there is not a single answer for everyone. However, in most cases the only time we would become responsible for the debt is if they have cosigned on a loan with the deceased. When we die, a new entity will develop called our Estate. An “Estate” is a collection of our assets and liabilities that will eventually be resolved and distributed to our heirs.
Managing Debt and Stress for Seniors
Ohio State University recently conducted a study to find a correlation between debt and stress for American seniors. Finances like medical debt, credit card debt, and second mortgages have impacted our lives by forcing us to work longer and delaying our Social Security filings. Studies like this highlight the vulnerability of older adults and a need for a financial strategy we must follow.
There are several options an elderly person can take to alleviate some debt to make sure you aren’t leaving unwanted baggage to your next of kin. There are simple practices like saving and budgeting, as well as debt management programs. No matter which strategy is chosen, it all begins with a willingness to properly manage debt.
South Coast Post Acute Can Help
With medical debt compromising a significant portion of elderly finances, it is clear the healthcare field must reevaluate their method of services. For over 40 years, South Coast Post Acute has provided exceptional care to our patients with world-class treatment and value in mind. Following our customized discharge plan, we work with every patient to ensure they get the care they need without dropping a financial burden on them. Contact us today to learn how we can help you recover!