I came across this article on USA Today and am a bit disappointed they are portraying seniors who die with debt as people I should pity. Is USA Today serious? At a time in life when most people try to cope with the cards they’ve been dealt, these folks use their age to their advantage.
In short, seniors are going into debt at higher rates these days. They are charging medical expenses and vacations, taking out second mortgages, and pretty much doing everything financially irresponsible everyone else does. However, they won’t be around long enough to have to repay it.
Should they feel guilty for borrowing so much money in their golden years they cannot repay it? Hell no! Ideally, sure, you die with so much money left over your kids feel like they hit the lottery, but is that really necessary? Should leaving a big inheritance really be seniors’ priority after retirement savings have dried up in the recession and medical expenses keep climbing?
Is it ethical to borrow money knowing you’re going to die before paying it back?
Not completely ethical, no, but nothing happens in a vacuum. Is it ethical for credit card companies to extend credit to people who obviously do not have a means to repay and then charge them fees and higher interest rates to increase their debt even more?
Most of this debt is coming from medical expenses which, for seniors, can be quite costly and necessary. Keep in mind we are told healthcare expenses stay high to cover all those people who use emergency rooms like a walk-in clinic and don’t pay. Americans are told our prescription drug costs are higher than anywhere else in the world because our money pays for the drug research while everyone else just pays for the drug. With all the inequities these people face with healthcare expenses can they really be expected to go without life-saving treatments or medicines for the benefit of a bank?
What’s the downside?
If you die with debt, it is paid back out of your estate. Heirs who are depending on an inheritance could be left hanging. Whatever belongings to be passed on to others should be gifted before you die so they aren’t sold off to cover left-over debt.
Of course, this strategy for the elderly only works if they are going to die soon. The average life expectancy for most is in the mid 70s, but changes the older you get. For example, a 40 year-old man can expect to live for another 36 years, but a 76 year-old man will probably live to see 85. The older you get, the older you can get. As we all know, the more you charge on credit cards, the more your minimum payment is. You can easily max your limits and run into trouble meeting your minimum payments with lots of time left on the clock.
Borrow for retirement, die in debt
I came across this article on USA Today and am a bit disappointed they are portraying seniors who die with debt as people I should pity. Is USA Today serious? At a time in life when most people try to cope with the cards they’ve been dealt, these folks use their age to their advantage.
In short, seniors are going into debt at higher rates these days. They are charging medical expenses and vacations, taking out second mortgages, and pretty much doing everything financially irresponsible everyone else does. However, they won’t be around long enough to have to repay it.
Should they feel guilty for borrowing so much money in their golden years they cannot repay it? Hell no! Ideally, sure, you die with so much money left over your kids feel like they hit the lottery, but is that really necessary? Should leaving a big inheritance really be seniors’ priority after retirement savings have dried up in the recession and medical expenses keep climbing?
Is it ethical to borrow money knowing you’re going to die before paying it back?
Not completely ethical, no, but nothing happens in a vacuum. Is it ethical for credit card companies to extend credit to people who obviously do not have a means to repay and then charge them fees and higher interest rates to increase their debt even more?
Most of this debt is coming from medical expenses which, for seniors, can be quite costly and necessary. Keep in mind we are told healthcare expenses stay high to cover all those people who use emergency rooms like a walk-in clinic and don’t pay. Americans are told our prescription drug costs are higher than anywhere else in the world because our money pays for the drug research while everyone else just pays for the drug. With all the inequities these people face with healthcare expenses can they really be expected to go without life-saving treatments or medicines for the benefit of a bank?
What’s the downside?
If you die with debt, it is paid back out of your estate. Heirs who are depending on an inheritance could be left hanging. Whatever belongings to be passed on to others should be gifted before you die so they aren’t sold off to cover left-over debt.
Of course, this strategy for the elderly only works if they are going to die soon. The average life expectancy for most is in the mid 70s, but changes the older you get. For example, a 40 year-old man can expect to live for another 36 years, but a 76 year-old man will probably live to see 85. The older you get, the older you can get. As we all know, the more you charge on credit cards, the more your minimum payment is. You can easily max your limits and run into trouble meeting your minimum payments with lots of time left on the clock.