Total Bankruptcy

The average credit card debt for Americans between the ages of 65 and 69 rose 217% between 1992 and 2001, and experts suggest that this trend is part of the reason for an increase in bankruptcy filings among the elderly. The National Consumer Law Center (NCLC) issued a report in 2006 suggesting that older Americans are using credit cards as a "plastic safety net" in the face of incomes not keeping pace with the cost of living, higher housing costs and out of pocket medical expenses, and rising property taxes. NCLC also suggests that creditor practices, including dishonest marketing, punitive fees, penalty rates, and change-in-terms provisions lead to escalating indebtedness and, in some cases, bankruptcy.