A New Problem for the Old

Posted on: June 14, 2014

Posted in Bankruptcy, Debt, Finances | Comments Off on A New Problem for the Old

612px-Elderly_Woman__BW_image_by_Chalmers_ButterfieldWhile aging baby boomers aspire to a placid retirement, this dream is being threatened by a growing problem: senior debt. An August 2013 article in Financial Post says, for example, “A report provided [by] ratings agency Equifax Canada shows average debt for consumers aged 65 and over climbed 6.5 per cent over the past year, the biggest year-over-year increase in the period for any age group.”

Apparently Canadians 65 and older account for eight per cent of bankruptcies, up from six per cent five years ago. “There’s been an increase since 1987 in bankruptcy of people over 65 of 3,900 per cent, it’s just huge,” says Nadim Abdo, vice-president of consulting and analytical services at Equifax.

Some reasons for this alarming situation include:

  •  People are living longer, so may not have saved enough money to cover their entire retirement.
  • Parents are bailing out debt-ridden adult children.
  • Seniors are sinking too much money into real estate, lured by low interest rates and the prospect of high returns.
  • Widows or widowers don’t change their spending habits after a spouse dies and their pension disappears.

The results of this rising problem is not only the anxiety of dealing with creditors but the increased risk of health problems, such as rising blood pressure and heart attacks, and passing estates to heirs that have to be placed into bankruptcy because of crushing debt.

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    Since 1992, Richard Killen & Associates, a Licensed Insolvency Trustee, have helped thousands of people resolve their financial problems. With 25 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.

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