VANCOUVER -- The number of seniors aged 65 and older continues to grow.
One challenge is the number of seniors who are in debt is also increasing.
Taz Rajan from Bromwich and Smith explained that isn't just due to poor money management. There are many factors, such as seniors supporting adult children, becoming the primary care giver for their grandchildren, or struggling to make ends meet for other reasons.
Current housing market conditions, loss in investments and the overall economy are contributing factors as well.
Rajan encouraged seniors to watch for warning signs that could indicate debt trouble.
The five signs to watch out for are:
- being unable to pay off credit card balance in full each month or struggling to make minimum payments;
- needing to borrow money for daily living;
- considering taking a payday loan;
- bebt impacting work, relationships, mental, emotional, and physical well-being; and
- feelings of shame and stigma.
If experiencing any of these warnings signs, Rajan encourages people to start taking actionable steps to become debt free.
The steps Rajan shared are:
- Know your numbers. It is important to have a full understanding of the complete financial picture.
- Create a budget. Get a clear understanding of money that is coming in and going out each month. Determine what is allocated to fixed and variable expenses.
- Surplus or shortfall. Determine if there is a monthly surplus (money left over each month) or a monthly shortfall (not enough money for commitments).
- Ask for help.
Rajan explained that licensed insolvency trustee firms are federally legislated.
They are the only ones who can adminster legal debt forgiveness through consumer proposals and bankruptcies.
Bromwich+Smith offers free, no obligation, personalized consultations.
Discussing a debt situation with a professional allows people to make informed decisions on how to get out of debt and move forward.
