With inflation being a legitimate anxiety for many around the world, there are also concerns for the most vulnerable populations. In Canada, that includes the senior population.
Debt is a very real issue for those who are aged 65 or above. That said, we wanted to give you a clearer picture of what debt for seniors looks like in the current Canadian climate. No matter the cause or the rising tide of this debt, dealing with it compassionately will also make the most sense — and it’s the right thing to do.
Seniors caught in spiraling debt
First, there is the story of a financial counselor in Calgary who told CBC News about her current situation. Shari Thiel talked about an 80-year-old resident who was put on a debt repayment program to keep her from losing her home. She also mentioned demand for services, in general, has been picking up again, especially from seniors.
“We need to sort out assets and debts and income and explore options that they have available to them,” she told the CBC. “ We make recommendations and sometimes gently guide them to understand what those options are, and what might happen.”
She noted that reaching out is what can make the most impact on seniors in Canada. That can lead to getting help and planning to reduce debt in ways that can make an impact on the debut, but not negatively impact the person paying down the debt.
A few causes of debt
Another story, this time from Financial Post, also gets the perspective of a debt counselor who shared reasons she’s seen for seniors who may be in debt. They go beyond just extra spending into other areas. The reasons she cited include:
Supporting adult children: It’s possible they need extra help with the economy being rough for many in Canada.
Unexpected illnesses: This can also be a cause of debt, especially if a sudden illness and care for it cut into retirement income that has been saved.
Concerns with managing finances: The counselor specifically cited the death of one spouse who managed funds and the difficulty of the widowed spouse taking over the books.
No matter the cause, the counselor made an important point — saving is still an option that needs to keep taking place. Having an emergency fund is still an essential part of life in Canada, and it should be a priority to save money just in case.
Understanding can go a long way in business
Treating everyone with compassion and understanding the miles walked in their shoes is something every business owner should practice. It’s also a major tenant of what we do at ARO, making it our purpose to not only reconcile debt but to also do that with a personal touch. Find out more about what we have to offer businesses on our website.
