This situation is especially discouraging for this group of consumers, who are either approaching or are already in retirement. Therefore, instead of spending their retirement years on leisurely excursions, they must return to work to pay off the debts they have accumulated over the years.
Why should this group be affected more than the majority of other consumer groups? There are several explanations, but three stand out. One is that the majority of those who did have savings invested them in the stock market. As a result of their persistent losses, the net worth of a significant number of these has decreased significantly.
In recent years, many baby boomers have been laid off unexpectedly due to the poor economy. This has forced many of them to seek out alternative income sources. Many who were unable to pay had to use their savings. And when their savings ran out, they began to accumulate credit card debt.
Real estate has taken a significant blow over the past decade, which is the third reason. The equity homeowners have in their residences has decreased. Some of the real estate investments have suffered such severe losses that they now have negative home equity. People of lower ages can typically supplement their income with additional part-time employment. Due to their age, it is more difficult for baby boomers to replace lost income. They have a much more difficult time finding employment than their younger counterparts, primarily because they are aged 55 and older. As a result, they struggle to replace lost income and are compelled to obtain loans.
Long stretches of unemployment have also caused many of them to lack health insurance. And disastrous diseases have depleted the meager resources that many of them had. The combination of all of these factors can deplete their available financial resources.
After exhausting all other options to return to financial solvency, bankruptcy is likely the final option for individuals seeking debt relief. And many baby boomers have reluctantly begun to use this sanctuary.""
" - https://www.affordablecebu.com/
