• Question
  • Fixed Income Credit Card Debt

    Asked by a 90 year old woman from Bainbridge Island, WA on 10/14/2015

    I am on a fixed income and have accumulated $26.000 in credit card debt, what can I do to get out of debt?

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  • Categories: Paying Off Debt, Retirement Planning

Answers

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  • There's only 3 things I can think of ...
    1. Get a job
    2. If you own your home, and it has enough equity, get a Reverse Mortgage
    3. Declare chapter 7 bankruptcy

    Actually, there is a fourth - my Mother-in-law, Dora, was in the same situation. She was too old to get a job, around your age, didn't own a home, and didn't like the idea of bankruptcy. So my Brother-in-law called each of the Credit Card companies, and explained her situation to them. He explained 90% of her income, which was from Social Security, went towards her medical prescriptions, and there was no possible way she could repay the debt. He told them they could send as many letters, and call as much as they're legally able to, but they'd be beating a dead horse. He suggested closing the account, and stop marketing to elderly ladies with limited financial resources. He explained the reason they're in the situation is because they offered credit to the wrong person to begin with (credit card companies continually solicited her, and gave her the cards, even though she didn't have the capacity to repay them). The bad part about the whole thing is it ruined Dora's credit.

  • Login to rate this answer:   Answered on 10/15/2015
  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • We have some content on our site that may be useful: http://www.newretirement.com/Services/Debt_Consolidation.aspx

    You may also find a debt consolidation service helpful - sometimes they can help you negotiate more favorable terms with your lender(s): https://save.freedomdebtrelief.com/ct?partner=newR&keyword=16252190#step/estimated_debt


  • Login to rate this answer:   Answered on 11/1/2015
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.