Most senior citizens across United States are comfortable in spending a little much using their credit cards. But because of the deteriorating economy brought by recession and the new policies and fees imposed by banks and financial institutions maintaining a credit card has become burdensome. Credit card debts are increasing even without additional expenditures mainly because of the accumulating interest rates.
This new situation has a huge impact to those belonging to low and middle income group. People who are expecting that their retirement are just years are filled with spending and travelling using the fruits of their labor are now having an unexpected and unwanted reality. And the savings they made in the past that were supposed to pay high dividends which were supposed to give them comfortable retired years, are just a thing of the past.
Those who are expecting luxurious retirement are now forced to either change their lifestyle, to go back working if they can find a job, and to have some form of self employment to cover for their expenses and cover for the credit card costs they have incurred. Others, who have no other choice to fall back on to cut their expenses by having more income, are forced to face growing credit card debts.
Among this people who are suffering these financial hardships, those who suffered most are people belonging or having low fixed incomes. And these people whose social Security checks did not rise along with the rise of gasoline price, and price of other basic daily necessities, are the ones who suffered the most financial hardships. Social Security Cost of Living Increases, which values are dependent on Consumer Price Index, indexes which include items like housing, has come down in value.
And even though at present, gasoline prices have relived off a little, still the prices on food items have not yet reduced. Food item¡¯s price may have reduced on ship merchandise and on grocery stores, compared to the previous year, but no one is giving back the these savings to the consumers.
Cards for senior citizens were supposed to be for their luxuries, but due to the resent condition of economy, senior citizens are using their cards to survive on their daily expenses. In spite of Medicare payments and other insurance policies, that should take cared of medical expenses, now these expenses are where the most card spending is. And on most of the families¡¯ debt in United States are contributed by medical expenses.
And from year 2005 to 2008, United States citizens that are aging from 65 years old and older have increased their card debt by 26 percent. While United States citizens that are aging from 35 years old to 64 years old have increased their card debts by seven (7) percent. And finally, for United States citizens aging from 18 years old to 34 years old have increased their credit card debts by one (1) percent.