questions & answers

Question: I am 74 with over $30,000 in CC debt. How do I get out of debt so I can retire. I work fulltime, but afraid of unexpected health problems. My husband has less than $800 per month from SS. I have no other debt other than CC and household expenses. Own 3 late model cars and home which are all paid for in full. I have enough life insurance to pay off my debt, but bad health could put me and my family in trouble. What to do?

Answer:

At age 65, U.S. residents can choose to enroll in Medicare [Part B (medical) and Part D (prescription coverage); Part A-hospitalization, is free]. If the person receives Social Security benefits, the SSA will automatically deduct the monthly Part B premium from benefits payments.  For assistance, you can call a Medicare representative at 1-800-MEDICARE. Keep in mind that, for each year an eligible person delays enrolling in Medicare, the cost to enroll increases. 

Alternatively, The Affordable Care Act aka “Obamacare” can provide health care options (healthcare.gov). (In fact, the ACA penalizes individuals who choose to remain 100% uninsured, although the penalty is imposed against annual taxes filed with the IRS.)

Failure to pay off credit card debt will likely cause long-term financial and other problems. Credit card companies often work with debtors to setup installment-type payment arrangements (which won’t require your life insurance policy proceeds). Also see “Dealing With Debt” article articleid=120

When debts cannot be paid, Bankruptcy is another common choice, although this has repercussions, including affecting your Credit Report, which can affect future transactions. Much legal advice is available on this subject throughout the internet. You may wish to begin with this article  "http://azlawhelp.org/articles_info.cfm?sc=25&mc=4&articleid=186"articleid=186