Are you a senior and having trouble paying your bills?

Some options to consider:

Reverse Mortgage:

If you are 62 or older and own your home, you could consider a reverse mortgage. A reverse mortgage allows you to receive cash advances based on your age, value of home and the current interest rate. There are no income or credit requirements, no payments on the amount you use and the income is tax free.  

The loan is not paid back until you sell your home, permanently move out of your home or pass away.   You always retain title to your home and will never owe more than the value of your home.

Debt Consolidation:

You could contact your creditors and ask for more time to make payments.   It might help to call a credit and debt counseling agency.   For example, Consumer Credit Counseling Service/Credit Counselors of California-a network of non-profit agencies partially funded by creditors and HUD often help people work out plans with their creditors.

1-866-889-9347

Be cautious about obtaining a debt consolidation loan to pay off your debts.   Typically, the interest rate is too high and your monthly payments will be difficult for you to make.

Bankruptcy:

If you have few assets and little or no income, bankruptcy may be an option.   It will not necessarily wipe out your debt.   For seniors with greater assets and income, however, filing for bankruptcy might make sense if your creditors will not agree to an extended payment schedule.   However, keep in mind bankruptcy can be expensive. In addition to filing costs there are attorney fees.   Bankruptcy does not change your financial habits.   Filing for bankruptcy may not solve your financial problems.   Seek an attorney’s advice before making such a decision.

Information provided by the Contra Costa Senior Legal Services

Look forward to our next Senior Tips articles on raising your Grandchildren.

Provided by http://www.planningtips.com/Planning_Tips.asp?Co_ID=93566&Tip_ID=6801

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