Elderly Arrears

Many elderly people struggle to make ends meet due to their limited fixed income, increasing prices and inflation. Some elderly people file for bankruptcy, have to downsize their home, move in with family or friends or move into managed/council properties.

Thousands of elderly people are sat in an excessive amounts of debt and increasing household bills and irresponsible lending has caused bankruptcies among the elderly to increase. The most at risk those above 75 who are really being left behind and are struggling to bring there debts up to date. 


At present modern technology is one of the biggest set backs elderly are having with many companies going paperless and charging for the service of bills and statements being sent out on paper. Although not the cause of the problem this certainly doesn't help one trying to get there creditors paid back. If someone you know is struggling with debts they need help from friends and family to understand what they can do to get themselves up to date. Contacting all the companies that they have debt with will be a great start so that as mentioned in previous posts and setting those companies to start sending out monthly bills/statements so that you know where you are begining so you can plan for the future.


Another thing with elderly people is they tend to hide problems as don't want to show family and friends they are struggling or need help, it's an awkward subject to talk about and so needs to be done in a careful way so that if they do need help they will open up and you will find and rectify all the problems they are having.


There is obviously initial ways to start cutting back but below is a list of the main points that not only elderly but everyone may see a few things they are not doing which could make a big difference.


Utilities
1. Invest in energy efficient light bulbs to save money on power bills
2. Improve home insulation to reduce heating and cooling bills
3. Use coupons when they truly represent a saving opportunity
4. Insulate hot water heater
5. Rinse clothes in cold water
6. Take luke warm baths or showers

Household goods
1. Watch for the items you use to go on sale and stock up when prices are at their lowest
2. Submit available rebate offers for products you use regularly
3. Buy generic vs. name brand
4. Bulk items on sale or “day old” items

Electronics
1. Craigslist
2. eBay

Food
1. Plan meals around items that go on sale or that are in season
2. Look for the items you use to go on sale and stock up 
3. Comparison Shop
4. Don’t go shopping when you’re hungry
5. Generic vs. name brand

Finances
1. Create an emergency fund – with enough money to cover expenses for 6-9 months
2. Downsize – downsize to a smaller home, trade in a car for a cheaper model
3. Get Tax Preparation Assistance – VITA Volunteer Income Tax Assistance 1-800-906-9887
4. Needs vs. wants - buy more needs vs. wants
5. Reduce spending – don’t buy things you don’t need or just because something is on sale
6. Budget - Create a budget and track spending daily or weekly
7. Reduce expenses – use coupons, buy in bulk, buy on sale
8. Debt – pay rent/mortgage, car payment first, then setup payment plans for collection accounts, judgments, tax liens, then everything else
9. Transportation costs – do you need a car, can you carpool or take public transportation 
10. Insurance – do you have adequate health, life and disability

Housing
1. Re mortgage
2. Co-elderly housing
3. Housing Information - www.seniorliving.com, www.SeniorsForLiving.com, www.aplaceformom.com, SeniorLivingSource.org/Housing, SeniorOutlook.com, 
6. Low income apartments 

(list gathered from various sources)

Today's advice is all about Debt Management Companies.

The first thing to note here is they are not councillors and although you may dread picking up the phone someone isn't going to tell you there's a quick fix for your debts.
As mentioned in a previous post Where Should I Go? debt management companies need to be approached with care, they are going to want to know every single penny that you spend each month, and if they feel you are spending too much on your shopping they are going to tell you to make cut backs.

As well as this you will be advised that your creditors could sell your debts on, this is in our opinion one of the major pitfalls of many debt management companies. After looking at your income and expenditure you may be advised to make a "token" or minimum payment, avoid this at all costs ! Doing this opens you up for your debts to be sold on, if you don't make an effort with your creditors they won't make an effort with you.

As well as this many Debt Management Companies actually charge a percentage or a monthly fee for sorting your debts out, again don't do this firstly why pay more money to get out of debt and secondly why pay when there are completely free companies doing exactly the same job as the big for profit DMC's.

Where should i go...?

So you've been frantically fighting to keep your debts up to date, and finally you wake up one morning and realise you can't its too much there's just no way out. Well fear not there is help in the most unlikely locations, and if your just willing to make a late push with a little commitment you may just start to  see the light at the end of that very long tunnel.

So where to begin, whether its cards, loans, mortgages, bills or bank accounts you first need to really understand how bad it is. There are vast amounts of debt management companies out there that will guarantee to take the stress away and sort your debts out but a what cost?  This is something we will cover in a lot more detail in future posts. So now what we need to do is get a pen and paper, a laptop with notepad or that shiny new Ipad you just bought that if your here probably shouldn't have. List from highest amount to lowest amount what debts you've currently got, and then note down all your outgoings you've got on a monthly basis. It's really important you think of everything here so look at statements, online banking, and any paper bills or online accounts you've got

Now in front of you  you've got the way forward we either sort this list out or we bury our heads in the sand. You're here so more than likely you want to sort this, so over our coming posts we will discuss what's next and who to really trust.

Remember to watch those purses and wallets and check back soon as we move forward in sorting out your debts, and any questions or queries leave a comment or email us at simple-advice@hotmail.co.uk