January 14,2007

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  Elder Debt

  Being the adult child of declining elder parents is enough of a struggle for many. The extra expense incurred by bringing another member into the household, or in setting Mom and/or Dad up in an ALF or nursing home is high, and the heartbreak of watching a loved one age and possibly be ill is strong. Complicating this issue is the very real problem of elder debt. Young or middle-aged adults in debt have enough issues, let alone the elderly, who may be forgetful and/or on a fixed income. They are much less equipped to make the changes in their lifestyle necessary to get out of debt, and their vulnerability as a population put them at a high risk for sinking further into debt. This never used to be the case, as elder Americans tended to carry much less debt than their young counterparts. Trends show that they are catching up, however.
  
  If you are the child of one or more parents in debt, you may be best advised to consult an attorney to look into your options on the matter. There have been cases where creditors have discharged the debt of elderly consumers, due to age and income status. The downside to this is that the amount written off is usually reported to the IRS as income, so your parents could be hit with a hefty tax bill that year. Other options include filing for bankruptcy – which carries complications with any consumer – or a reverse mortgage. The key thing, as with any debt, is to stop the problem as early on as possible. If you are taking care of elder parents, this task may fall to you.
  
  
  
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