Consumers allowing their financial obligations to turn their life into a hell is no doubt a bad news, irrespective of the age it is happening. However, the situation may be all the more worse for the 50 years old and above. It is very important for them to rein in the negative aspects of their balance sheets and get their debts under control while they are still in a relatively strong position to make a good living.
Wean out your dependents – By the time you’ve attained the age of 50, it becomes quite a lot important for you to start trading your guns towards your own needs and thus, your savings, instead of your dependents. In these tough economic times, there are many graduates who are still financially dependent on their parents’ income for sustenance and even Sandwich Generation are forced to look after their aged, feeble parents.So, no matter how difficult it may be for you to ask your dependents to earn their own living, there is hardly anything you can do at this age, other than repaying your existing debts and staying away from new ones. The key is that the sooner you start off with the process, the faster will you be able to regain your financial independence.
Understand your debt repayment options – Older consumers like you have access to some debt management programs that other debtors don’t. In this case, one of the most popular way out of the debt mess is to take advantage of reverse mortgage. This will let you to enjoy the equity in your home minus the risks of a home-equity line of credit or traditional mortgage. A reverse mortgage tailored to your needs can get you either a lump sum amount, monthly payments or a line of credit out of which you can draw money at your discretion.However, before you jump into any conclusion, you must properly understand the terms of the reverse mortgage. The fact is your spouse may become homeless due to an unfortunate incident like a foreclosure in the event of a failure of other living members of your family to repay the loan.
Get coverage for unfortunate events – Though life insurance policies is an important option to defend your finances against unforeseen tragedies, yet they won’t suffice you in cases of major long-term medical costs. So, the best way to prevent such illness from eating away your savings is to maintain a health-insurance coverage throughout your career along with some supplemental insurance coverage added to Medicare, at a time when you’re eligible to take advantage of the same. Apart from that, you may try out long-term care insurance as you grow older to prevent a serious financial damage from affecting your financial independence, while bearing the cost of skilled nursing and other specialized health care services out of your own pocket.
Nevertheless, Medicare and many other health insurance policies will only provide you with a limited amount of coverage in case you need long-term medical assistance. Therefore, it is advisable to buy a separate policy to further minimize any threat to your nest egg and eventually, your financial stability.