Getting Into Debt
Most of us are in debt to some amount, this seems to be the American way. Probably the biggest reason many of us find ourselves in debt is because our income decreases as our living expenses increase, that is the way life most often works for people on a fixed income. Retirement is the most obvious situation we think of when we think of people on a fixed income, when we are working we do not think about how things will become after we retire. Many people underestimate how much money they will need to live comfortably on their retirement income, very few people today are going to experience high paying pensions and good medical insurance.
Isn’t it ironic how we have good medical insurance while we are working and many people rarely use it, but after you retire your health problems often increase and so do your medical expenses. Now with less coverage you must pay more out of your pocket every month for your prescriptions and medical expenses, with having blood work alone for many people this can add up to quite an expense. This does not cover special testing and your physician appointments, many people who are retired have appointments with several specialists which cost them money. Don’t forget about your over-the-counter expenses, these too have more likely increased since you quite working?
Poor Money Management
Sometimes we become use to being able to buy the things we need and want without worry, often people use poor money management and get into debt before they realize it. It takes time to adjust to going from a higher income to a lower income, plus you have more expenses out of your pocket you did not have when you was working? Everyone who gets into debt trouble does not manage their money poorly, often they have no choice you need food and clothing plus medications with health problems.
Financial problems are the main reason for relationship conflicts, many times when debt becomes a problem a couple will start to argue and even divorce. Talk about unexpected expenses, divorce can really put you into debt in a very short time. Besides putting you deeper in debt, divorce causes most people emotional health problems. This could add the expense of physician appointments and medications, it is hard to believe only a short time ago you had no debt and your life was a very good one?
Many people after divorce even on a fixed income can develop addiction problems, the biggest addictions for people who are retired are gambling and alcohol. This is even more true for retired divorced people, fixed income or not a person has to do something with so much free time being retired and many find unhealthy addictions. Many start hanging out at the casinos during their free time without spending an extreme amount of money, but as time goes by the spending and drinking becomes more severe and so does falling deeper in debt.
Many elderly people will not take advantage of the benefits available for them, some are too proud to take what they call charity. Today things are very rough everyone, even more difficult for the elderly with our high economy. Some elderly folks are forced to do a reverse mortgage, at least this can prevent them from losing their home. Others might have to borrow from their life insurance policy, rent part of their home maybe to make ends meet?
What Else Can They Do?
Many people on fixed incomes gets to the point they must start selling their belongings they worked all their life for, this is very sad and often triggers depression for these people. Often they wait too long and their credit is very poor, so they can’t get any personal loans or even debt consolidation loans from their bank. By now they are living on very little and there is no money for anything extra, many can’t even afford to buy their grandchildren Christmas and Birthday gifts.
What Is On My Mind Today?
Anyone living on a fixed income today has it pretty rough, the government has many people believing once you retire medicare pays for all your medical expenses which is not true. Most people struggle at times with debt living on a fixed income, some lose their transportation because they can’t afford a vehicle any more. Some places have public transportation which is free for senior citizens, but many rural areas does not have public transportation for these people to get around. Some are lucky and have family living near them who helps them out, but today families are spread out and many times the family had to relocate for jobs.