Graham & Associates Law Offices, LLC | Serving all of Northeast Ohio

Ohio retirees facing mounting debts

Ohio residents may be interested to learn that as the Baby Boom generation approaches retirement age, many of its members are finding that they are saddled with considerable amounts of debt. The generation may face a number of different debts, including student loans taken out for themselves or their children, credit card debt, business debt and mortgages. These financial challenges may lead some people to delay retirement.

According to recent data, the Baby Boom generation has the highest level of credit card debt and the greatest number of open credit accounts compared to any other age group. Furthermore, individuals who are over the age of 60 have seen a drastic increase in the amount they owe for student loans. The most recent figure is $43 billion while the figure in 2005 was $8 billion.

When managing debts and planning for retirement, those individuals might seek to restructure debt payments. Some might benefit from extending the length of time the payments are made, and others may want to increase the size of their payments in an attempt to remove the debt by the time that they retire. In some cases, boomers are advised to continue working and use their income to pay off the debts. Delaying retirement may also increase social security payments once the retiree claims this benefit.

In some cases, filing for bankruptcy, including Chapter 7 or Chapter 13, is the strategy that makes the most sense for debt relief. An attorney may be able to advise current and prospective retirees about the benefits and drawbacks of the bankruptcy process. Because the financial consequences of bankruptcy can last for many years, legal counsel can help throughout the proceedings.

Source: FOX Business, "Boomer Retirees Need a Hand Paying Down Debt", Casey Dowd, October 09, 2014

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