Senior household borrowing has increased significantly in the past 10 years, with more than 61 percent of households headed by an adult age 60 or older carrying some form of debt, according to a new report from the National Council on aging.
Here are eight findings from the report.
1.,The median total debt was $40,900 in 2013 — more than double what it was in 2001 — for households headed by an adult age 60 or older.
2. One-third of senior homeowners owed money on a mortgage or home equity line of credit, with 30 percent owing payments that exceeded one-quarter of their income.
3. Senior households taking payday loans increased fourfold, from 0.5 percent in 2007 to 2.2 percent in 2013.
4. In a survey of professionals who work with seniors, nearly all — more than 90 percent — of respondents said medical debt threatened their clients' financial security, followed by credit card debt (87 percent) and household utilities (84 percent).
5. Nearly a quarter of these professionals found their senior clients were forgoing needed home and vehicle repairs because of debt.
6. Additionally, the professionals routinely see seniors making financial trade-offs such as splitting pills, skipping medical appointments and missing rent/mortgage payments.
7. According to the report, more than 84 percent of people age 65 and older have at least one chronic condition, and often more as they age.
8. The report also cites a study in the Journal of General Internal Medicine, which revealed that out-of-pocket medical expenditures in the five years prior to an individual's death totaled more than $38,000, leaving 1 in 4 seniors approaching bankruptcy.
"The trade-offs that seniors make to manage debt can have serious negative consequences on their health and financial well-being," Maggie Flowers, associate director for economic security at NCOA, said in a prepared statement. "We need to recognize that debt is a problem among this population, and help prepare older adults to better manage their future medical, housing, and other daily expenses as they age."
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