Financial trouble can strike at any age and for virtually any reason. Even those who feel as if they have adequately prepared for emergencies should understand that it is impossible to foresee everything that might come up in the future. These types of financial troubles seem to be particularly troublesome for baby boomers in Connecticut. Many are turning to bankruptcy as a result.
Baby boomers are filing for bankruptcy at increasingly higher and higher rates. Individuals over the age of 65 now account for one out of every seven bankruptcy filings. The problem is not reserved for boomers who are on the younger end of the spectrum, either. In 2016, approximately half of American adults over the age of 75 had debt. In 2007, fewer than one-third of this age group had debt.
The factors driving this problem are complex. As these adults are living longer than past generations, the cost of medical care is rapidly rising. Many are still paying off student loans, have little to no personal savings and have scant — if any — pensions. One survey also found that two out of every five baby boomers had saved only $10,000 or less for retirement and one in 10 had not saved anything. Stagnant incomes that never kept up with inflation could have contributed to this lack of savings, and older Americans are also likely to have sizable credit card debts.
Debt is often painted as a problem caused by frivolous spending habits or poor budgeting skills. In reality, many people end up in debt because of snowballing problems, such as an unexpected bill, low wages and more. When a person in Connecticut finds that he or she can no longer find a way out of debt, personal bankruptcy can help clear a path towards improved finances.