Seniors Over Age 65 have highest bankruptcy rates in Canada

 Bankruptcy rates among seniors have exploded by 1747% in 2012 over 2011 according to a report by the Vanier Institute (a non profit ). This is a shocking statistic, but it just proves that now that the population lives longer, the money just doesn’t go as far.

Seniors have worked all their lives and now find that the high cost of living and the possibility of retiring with an existing mortgage is more than they can handle.

High home prices mean it’s taken longer to pay off a mortgage than in the past. Pensions do nothing to keep up with the high cost of utilities, food, and added health expenses for seniors. Bundle it all up together and using a credit card or a line of credit is a stop-gap at best.

Most people don’t know where to turn if their payments begin to overwhelm them.  Without an extra income stream to pay the debts this can spell Bankruptcy. And according to the Vanier Institute Report it’s becoming epidemic with those over age 65.  Have the “Golden” years turned into climbing a mountain of bills each month?

Refinancing the equity in a home to pay the bills is most often not an option because of the cost of making higher mortgage payments.  However a Reverse Mortgage can be the answer.  You are not required to qualify based on income or credit rating. You can get the money within a month. The best part is you will NEVER make a payment.  I have prepared a brief video to explain the benefits of Reverse Mortgages.  You can access  your equity for many reasons not just debt payment.

Link for video; <iframe width=”560″ height=”315″ src=”http://www.youtube.com/embed/F3IqhMpeiSs” frameborder=”0″ allowfullscreen></iframe>

You must have equity in your home and be over 55 years of age to qualify. A Reverse Mortgage isn’t for everyone, but it’s an option worth discussing before turning to bankruptcy as the only answer. Besides bankruptcy has costs and it may add to the problem.

Contact us if you would like to assess your options, there’s no obligation! Use the form below to contact us today!

 

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Elfie Hayes
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