The growth in the debt for seniors represents a precarious situation for older Americans. More seniors risk running short of money in retirement due to their increased likelihood of holding debt, according to a 2018 report published by the Employee Benefit Research Institute.
The percentage of households headed by someone over age 75 that had debt payments in excess of 40% of their income increased by more than 23% from 2007 to 2016, according to the Employee Benefit Research Institute.
The increase of lifespans is stretching savings, increasing the likelihood that older Americans will need costly long-term care. As a result, there’s been “exponential” growth in the number of older Americans filing for bankruptcy, according to a collaborative study by professors from the University of Idaho, Indiana University Maurer School of Law, University of Illinois College of Law and University of California-Irvine School of Law. One in 7 bankruptcy filers is over age 65, which is a fivefold increase over the past 2½ decades.
Mortgages account for the greatest percentage of debt for those in their 60s, followed by auto loans, credit cards, home equity lines of credit and student loans, according to New York Federal Reserve data.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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