Creditnet News Story
Facing medical expenses, some seniors turn to credit cards to pay bills
Thursday, December 10, 2009
By Thomas Astery
Unexpected medical expenses are tackled by some through using plastic.
A credit card offers the ability for people to pay for unexpected expenses, and many older Americans have used plastic in order to pay for medical bills.
A recent survey from Golden Gateway Financial showed that 34 percent of respondents who are 62 or older said they faced unexpected medical expenses. Of those, 25 percent relied on a credit card to make their medical payments. Another 21 percent said they managed to get an agreement on payment from their medical provider, while 27 percent said they ended up not paying their medical bills at all.
Along with facing unexpected medical bills, 30 percent of respondents said they sold items they no longer needed in order to bring in additional income. Also, 10 percent of those polled who weren't working picked up employment, while another 20 percent expected to do so soon.
"It's unfortunate that in what should be the golden years of their lives, they are forced to make concessions just to put food on their tables," said Eric Bachman, founder and CEO of the company.
While older people are finding ways to deal with a difficult economy, a recent report from Demos shows that the average amount of credit card debt for those older than 65 increased 26 percent from 2005 to 2008. Furthermore, people in that age group averaged almost $4,000 in card debt associated with medical expenses.
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