Older employees who lose their jobs could have a rough time finding a new one. According to a national poll on healthy aging noted by the AARP, nearly 82% of respondents over age 50 experienced age discrimination. Survey participants also claimed to face prejudice and stereotyping based on their age.
Because of hiring discrimination, baby boomers could run into serious financial problems after an unexpected job loss. As reported by CNBC, older individuals who do return to work typically find a job that pays less than their previous one. To make up for an income loss, many Americans turn to their credit cards.
Senior citizens may incur high credit card debts
An academic study in 2018 found that a deterioration in the nation’s traditional safety net forced seniors into debt. Medical care and high insurance deductibles, for example, caused older Americans to pay for many of their expenses with credit cards.
Between 1999 and 2019, the debt loads of individuals in their 60s increased by 471%. Individuals in their 70s saw their debt increase by 543%. Home loans accounted for the largest debt held by Americans over 60. Outstanding mortgages and credit card debts could affect a senior’s ability to retire.
Bankruptcy may allow seniors to reorganize their budgets
Homeowners may consider refinancing a home loan to reduce their monthly expenses. After falling behind on consumer debts, however, lenders may not approve a new mortgage because of a lower credit rating.
As reported by U.S. News, individuals with regular income may keep their properties by filing for a Chapter 13 bankruptcy. Based on the amount of outstanding debt owed, filers may create a three-to-five-year repayment plan.
Bankruptcy may allow Florida’s seniors to remain in their homes and also maintain their retirement plans. When an individual completes a Chapter 13 payment plan, the court may discharge the remaining debt balances.