Budget Basics
Going Deeper In Debt
Older Americans Take On More Debt Than They Can Handle; Bankruptcies Soar
Wednesday, January 01, 2003
Lucretia Marmon
AARP Bulletin Today
But help is available. Debtors who are unable to get their finances back on track themselves are turning increasingly to debt counselors. The 1,300 accredited nonprofit agencies of the National Foundation for Credit Counseling, based in Silver Spring, MD., helped 1.5 million households in 2002.
Consolidated Credit Counseling Services, a large agency in Fort Lauderdale, Fla. Reports a 25 percent increase in recent years of clients over age 50.
"Demographics, attitudes and economic and social trends, along with the mammoth effort by financial institutions encouraging people to borrow, make a surefire recipe for trouble in retirement,:" says CFD's Cohen. "If you hammer on a nail long enough, it sinks in. "
Certified counselors at agencies like these help clients make budgets, cut spending and negotiate with creditors to lower payments. Reputable agencies tailor payment plans to the circumstances of each client, sometimes offering services for free.
"Choose a debt counselor the way you would a doctor," advises Tiff Worley, president of Minneapolis-Based Auriton Solutions. "If someone sounds like they're selling you something, they probably are."
