FocusOnTheFamily

Boomers and spending

Written by Steve and Laura Petherbridge

Forty years ago, American spending habits began to radically change. Instead of saving to make a purchase, people had a new option – credit cards. Unfortunately, many seniors are now experiencing the consequences.

In a recent survey, people 62 and older were asked how many years it would take to pay off their debt. Here are the results:

Less than one: 14 per cent

One to less than five: 41 per cent

Five to 10: 16 per cent

10 or more: 12 per cent

Never: 17 per cent

Those nearing retirement will likely face the challenge of living on a reduced income. Additionally, many seniors do not have the benefit of pensions to supplement their income or pay for rising health costs.

If you find yourself in this distressing situation, don’t lose heart. Here are a few tips to help you move out of debt:

1. Honestly assess your situation. Denial will only delay the consequences.
2. Once you know where you stand financially, begin working on a debt-reduction strategy. Make sure you put your plan in writing.
3. Evaluate your expenses, and make realistic adjustments. For example, you may find it difficult to stop eating out altogether, but you can perhaps switch from four nights a week to once, choosing less expensive restaurants.
4. Seek wise, trusted counsel and accountability. This could include your spouse or a professional budget counsellor. When choosing a professional, make certain he or she shares your value system and does not have a vested interest. Remember that being a Christian does not automatically qualify the person as a good financial expert.

Steve Petherbridge is a church business administrator. Laura Petherbridge is an international speaker and author. They live in Lady Lake, Florida.

© 2008 Focus on the Family. All rights reserved. International copyright secured. Used by permission.

Recommend this article...