More senior citizens are taking on excessive credit card debt, leaving them financially vulnerable. Reduced retirement savings due to the stock market, increased medical costs, and fixed incomes leave many seniors no choice but to rely on credit cards to survive. In fact, a recent study by Demos found that the average self-reported credit card debt among low- and middle-income consumers 65 and older increased 26% from 2005 to 2008, to $10,235.  Debt for all borrowers surveyed only increased 3% during that time. Unfortunately, financial problems of seniors are so serious that the number of older Americans filing for bankruptcy has increased at alarming rates, making them the fastest growing age group in the bankruptcy courts.

While debt problems plague people of all ages, they are particularly difficult for senior citizens to handle. For example, many older Americans must forgo medical treatment and exhaust savings accounts in effort to repay debt. Following are some suggestions to consider if you or someone you know is experiencing financial trouble.

Prioritize your debts. Some debts are more important pay promptly than others. For example, you must continue to make mortgage or rent payments so that you do not lose your home. You must also pay utilities and provide food. Please do not be tempted to let your insurance coverage expire.

Know your rights. Do not feel “bullied” by collectors into making payments you cannot afford or paying debts that may not be yours. Visit FTC.gov and read the Fair Debt Collection Practices Act (FDCPA) to learn your rights when dealing with collectors.

Make a plan. Determine how you are going to repay your debts and present that plan to your creditors. Many creditors, particularly doctors and hospitals, may be willing to reduce your required monthly payments. If you are able to negotiate a revised payment schedule, get all of the details in writing to avoid future problems.

Be realistic. You may be used to caring for others rather than having others care for you. A 2007 study by HSBC Group, the Oxford Institute of Aging, and Harris Interactive, found that older people are much more likely to give care to younger generations than to receive it themselves. However, a 2009 survey of adult children revealed that the majority (67%) were more willing to give financial help than their parents think they would be.

Tap avaiable resources. You may have more resources than you realize. According to the AARP, a reverse mortgage can turn the value of your home into cash without having to move or to repay the loan each month. In addition, you have a whole-life insurance policy, you may be able to cash-out. You might also consider taking on a part-time job or selling unneeded assets.

Finally, don’t be afraid to ask for help. Research any and all assistance offered by local city and county government offices; you may also get help from your local United Way. 

Children of aging parents should read the blog post on Consumerism Commentary titled Helping your parents with their finances.

It’s an exciting and scary time in many young adults’ life – heading to college. There’s so much freedom in being a college student. It’s a four-year adventure! However, sometimes as young adults when we aren’t under the watchful eye of our parents we can get carried away especially when it comes to money and credit.

As a poor college student it’s so easy to charge unnecessary expenses on a credit card. I have a confession to make. As a college student my only purpose for getting a credit card was to go shopping and wear the kind of clothes I desired. I was, however, responsible enough to pay my credit card off. Yet, I could have used that money on something more useful. Don’t fall into the “I’ll charge everything now and pay it back later when I get a full-time job” trap that so many students fall into. Here are some financial tips that were beneficial to me as an undergrad.

Look for student discounts: There are all sorts of deals out there for college students. You just have to take the time to do the research and look for them. Take advantage of student discounts at the movies, museums, theatre, and even some gyms offer a discount for students. The extra savings go a long way.

Use credit card sparingly: Your undergrad years are a good time to establish credit because you’ll need it later when you want to purchase a car, home, rent an apartment, or be considered for employment. It’s also an opportune time to destroy your credit score with frivolous purchases on a credit card that you can’t afford to pay back. Credit should be used as a tool of convenience not an extension of your income. If you purchase a large ticket item on a credit card work out a budget to get the debt paid off as soon as possible and don’t continue to charge expensive items on a credit card without first paying it off.

Don’t take out unnecessary student loans: Student loans have become the norm for most college students. However, only take out enough to pay for educational expenses – not personal expenses. I knew some students taking out extra loans just to live off or use for spending purposes. This is one of the worst financial mistakes you can make. It may seem like free money at first, but you’ll regret it when you land that dream job and all your disposable income is going to pay back loans you didn’t need in the first place.

Save, save, save: Did I mention save? A lot of young adults neglect saving at an early age because they just don’t see the benefit or don’t have the discipline. If you begin saving a little every month you’ll be surprised at how fast that money grows over time. At the end of each semester I got a refund check. Instead of spending it I saved it and by the end of my senior year I had enough money to put a down payment on a car and to help pay for expenses after I graduated.

Open a checking account: I opened my checking account when I was a sophomore in college. It was one of the wisest financial decisions I made. My paychecks went straight to my account and funds were available immediately on payday. I no longer had to go the local supermarket to cash my check and get charged a fee. Checking accounts are fast, easy, convenient, reliable, and a safe way to store your money.

Spend wisely: Don’t spend all your extra money eating out, shopping, or on entertainment. If you live on campus use your meal plan instead of eating out. Try taking the bus sometimes and save money on gas. Or, have a movie night at your apartment/dorm instead of going out and buying a movie ticket and refreshments.

Finally, it’s important to keep track of your expenses – know what’s going out and what’s coming in. The best way to do that is to create a budget. A sound budget is your best friend when it comes to finances.

For more about college and credit, check out:

New & old ways to pay for an education
Money management for the first time adult
Budget decorating tips from the dorm

The Problem
Nothing strikes fear into the heart of this bride-to-be like the bachelor pad bathroom.

Perhaps you didn’t hear me. I said the BACHELOR PAD BATHROOM. (Dun, dun, DUUUNNNN!)

“What’s that?” you ask. Well, imagine a very dark, grimy place that never sees the light of day, let alone a sponge, a pair of rubber gloves, or a single scrubbing bubble. In this dust bowl, germs roam free like bandits in those old western movies. Instead of Clint Eastwood and John Wayne, the stars are Clint E-coli and Clogged Drain.

Sorry, boys, there’s a new sheriff in town.

With less than two months before my fiancé and I say ‘I Do’, I was determined to turn his man cave into a place we can both inhabit…peaceably. Here’s the catch: the upcoming wedding is expensive so this bathroom makeover needed to be a bargain.

The Solution
Grout paint. At less than $10 a bottle, grout paint is the best bang-for-your-buck when it comes to making over a bathroom.

No matter how much you scrub your bathroom, discolored grout between the floor and shower tiles will make the room feel dingy. Slicking on a coat of grout paint brightens the room, bringing back that crisp, clean ambiance of a brand new bathroom.

Your Bargain Bathroom Makeover
Gather your supplies. You’ll need:

• Grout paint from your local hardware store. I recommend one with a sealer mixed in. Grout paint comes in white and off-white so choose the shade that will look best in your bathroom.
• Cleaning supplies to clean the grout before you paint. If you want to keep it cheap and earth friendly, use baking soda, lemon juice, and an old toothbrush to scrub grout lines. Remember to rinse well.
• Small paint brush to apply the grout paint.
• Rags for wiping the surround tile clean.

Step 1: Clean the grout lines with your cleaning supplies. This step is important because the grout paint needs a clean surface to stick to. Any debris will cause paint to chip and peel away. Rinse cleaning agent away with water and let floor dry completely.

Step 2: Following the instructions on your bottle of grout paint, paint grout lines using a small paint brush. Work in small sections and wipe paint off of surrounding tile with a damp cloth as you go.

Step 3: Let paint dry for at least 24 hours.

Before & After
Here are the before and after photos of my bathroom makeover. It’s amazing the difference you can make with $10 and a little elbow grease! Do you have any budget bathroom makeover tips to share?

Before

After