With the current inflation rates, the lifestyle of an average American retiree becomes a challenge as the prices of almost every commodity and utility have increased to a great extent. The personal savings of the elderly people are depleting rapidly which has forced them to use their credit cards with high interest rates to pay even for basic necessities like shelter, utilities and food.
When the expenses go out of control, they end up getting into debt. Some of the home owners have staked their own accommodation to repay huge debts. Such people who are stuck in a vicious circle of high expenditure and meager income need to find solutions that would make them debt free.
The first step is to analyze what is the root cause of getting into this financial mess. A large part of these issues can be solved if the children of the elderly take care of the main necessities of the elderly people. Expenses of groceries, rent for accommodation and the monthly medical expenditure can be shouldered by the children so that the life of their parents becomes less burdensome.
The elderly should reduce the credit card usage unless there is an emergency situation. Another solution is to purchase low interest credit cards which may reduce the credit limit and automatically curb the unnecessary expenses. Avoid owning more than one credit card as you have a tendency to spend more. Form a monthly budget and pay off the bills on time without accumulating it over a long period.
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