The American Association of Retired People’s list of recommendations for successfully managing consumer debt was recently reviewed by personal finance expert Julia Scott in a guest column for the Newark Star-Ledger.
Scott generally praised the AARP’s recommendations, frequently taking the time to use her own knowledge to extend a point or simplify a course of action laid out in the original advice.
However, Scott also took issue with the rationale behind several of the AARP’s pieces of advice, saying about the organization’s recommendation of limiting credit card use “it’s true that the credit unions like to see consumers use a portion of their limits, but more to the point is that you should only charge what you can pay off each month. It’s nearly impossible to get ahead when you are paying double-digit interest rates.”
According to experts, elderly consumers face a higher risk of suffering from serious debt-related issues, given their likelihood of being on a fixed income or pension and of requiring significant funds to pay for age-related medical treatments.