Many have served their country and the community for decades, yet senior citizens can easily fade away into the background, especially when it comes to finances.

You may have thought that senior citizens would be able to effectively manage their money, after all they have plenty of experience. However, seniors often find themselves needing more money to look after themselves as they age.

Today we can see that there is an increased demand on senior finances. They no longer have the same disposable income as they once had. Instead, the need to consider the rising costs of healthcare and housing, as well as a dwindling savings account and flat retirement income.

When seniors reach a critical point, where they need to borrow money, most do not go to relatives. As you would expect, the older generation would not dare ask their own children for money to pay for anything, not even to pay for health care services or to keep a roof over their head. Instead, they look to other financial lenders for help and assistance.

Why Ask Lenders?

As previously explained, senior citizens would never ask their children for money, not even for a small loan. So, they look towards securing finances from personal loan providers or credit card companies.

Unfortunately, this is the only realistic way they can bring in the extra finances. Having a fixed retirement income stops them going out and earning the extra money for themselves.

The Potential Issues

A senior citizens income is sufficient for day to day costs, such as food and the occasional household bill. However, if a senior requires some additional money to cover their own health care or an emergency has arrived unexpectedly, then the only realistic way they can get access to money is by borrowing it.

Even though going to a lender may be the only way to secure extra finances, paying back any type of credit can prove difficult, especially if the senior only receives social security payments and some contribution from a retirement fund.

The potential risk of not being able to pay the lender back is very real. If an individual of any age cannot pay back their creditors, then things will just go from bad to worse.

Where Can Senior Citizens Get Further Assistance?

Dependant on the help and guidance that is required, senior citizens do have access to a number of schemes that can help.

There is a number of Government and Privately run assistance that can potentially help. Some associations may help pay for individual living costs. These associations could be a great starting point for senior citizens, especially when compared to going straight to a personal loan company or credit card provider to gain access to additional funds.

As well as these, senior citizens can also invest in several types of insurance. These insurances may seem like a waste now, but overtime they will be worth their weight in gold, especially those insurances that focus on providing health care.

Where Can You Seek Help If You Are Already In-Debt?

If seeking the assistance previously mentioned is futile, as you are already in-debt and owe money, what can you do?

If you already owe money there are a number of different financial solutions available to you. Debt management solutions are varied, and choosing the right one for you is essential.

You may want to consider a debt consolidation loan, as these offer you credit card debt relief or personal loan relief. They are an ideal debt management solution if you want to pay off a number of different debts.

IVAs are also available, but you will have to pass an assessment on how much you owe compared to how much of your borrowing you can pay back.

If You Are In-Debt And You Own A House?

One of the biggest financial assets that you own may be your home. If you are struggling to cope with an ever increasing burden of debt, you may want to tap into the equity in your home by applying for a reverse mortgage.

What Is A Reverse Mortgage?

A reverse mortgage is where you can borrow money against the equity that you have already paid into your home. The equity is already there, a reverse mortgage just allows you access to it.

However, it is not all sunny side up. If you decide to remove some of the equity from your home you still have to repay the money back into your property. If you are considering this option then use an FHA guarantee on your reverse mortgage. This will aim to ensure that your repayments are as manageable as possible.

One of the biggest benefits about a reverse mortgage is the amount of interest that is charged. It is pretty typical of any other mortgage provider, as your home is used as security for the lender. This means that, in an emergency, using the money from a reverse mortgage works out a lot cheaper than using money from a personal loan or credit card.

How Can Debt Affect A Senior Citizen?

Debt, regardless of age, can cripple an individual. However, senior citizens do have it a little tougher. The main reason is that they do not have a chance to rebuild their lives if they do get into a lot of debt.

Senior citizens are also more likely to suffer emotionally if they find themselves in debt. Health, both mental and physical, can start to deteriorate and they will experience changes in how they conduct their lives.

The most important thing to remember is that debt can be managed if acted upon early enough. There is an abundance of credit card debt relief, as well as debt relief for personal loans. Consolidation loans can provide the perfect debt management solution or, for some, it could be that an IVA works better for them.

If you know of a senior citizen that has had to borrow money, go and check to ensure that they are coping with the debt. If you believe they are struggling, point them in the right direction.