REVERSE MORTGAGE INFORMATION
Seniors Fall Victim to Easy Credit Offers
Senior adults are unfortunate targets of easy-credit offers which can trap them into mounting
debt. It is not uncommon for seniors to receive 30 or more pre-approved credit card solicitations
through the mail each year. Some include a check for $5,000 to $10,000 as an advance against
their credit limit. All that is required is to deposit or cash the check. Simple enough until the
payments are due.
For many senior adults living on a fixed income with little savings and the need to pay medical
expenses for an ailing spouse, higher housing costs, or rising day-to-day expenses, an offer of
instant cash can seem like a blessing but it can lead to big trouble!
These offers take advantage of seniors by promoting a low introductory rate and then in the
hard-to-read small print disclose that the rate will adjust up as high as 24%. All that most seniors
can afford to pay each month is the minimum payment, with very little going to reduce the
balance. Seniors can find themselves making payments the rest of their lives. So, what started off
as a blessing quickly turns into a nightmare.
Households headed by someone 75 or older, with debt, increased substantially in 2004 to 40.3
percent from 29.0 percent in 2001, according to a recent study by the Employee Benefit Research
Institute. This mounting debt is putting their ability to finance their remaining retirement at risk.
For many seniors, there is another option.
A Federally-Insured Reverse Mortgage enables
homeowners 62 and older to turn part of their home’s value into immediate cash for any purpose
and with no repayment for as long as they live in their home: a program designed to help seniors
maintain their independence and stay in their home. Since there are no monthly payments, there is
never any risk of losing the home. With five plans to select from, senior homeowners may
customize their reverse mortgage to best meet their needs.
Unlike high-interest credit cards or consolidation loans, the reverse mortgage program offers a
low interest rate. Past credit history and income are not used in qualifying for the program, and
the money received is tax-free and does not affect Social Security or Medicare benefits. Seniors
may use this money to pay off debts or an existing mortgage to eliminate the payments. Also,
they may receive extra money they need for medical expenses, home repairs, or unexpected
financial needs.
Once senior adults start taking on credit card debt they quickly find themselves trapped. Their
monthly payments decrease the money they have to live on, causing them to fall deeper and
deeper into debt.
Some even find themselves using one credit card to make the payments on
another. With a reverse mortgage they have no monthly payments to worry with, so they are able
to get the money they need without falling into a trap. Plus, seniors retain ownership and control
of their home. It’s smart money for many senior homeowners!
for more reverse mortgage information visit nrmec.org
debt. It is not uncommon for seniors to receive 30 or more pre-approved credit card solicitations
through the mail each year. Some include a check for $5,000 to $10,000 as an advance against
their credit limit. All that is required is to deposit or cash the check. Simple enough until the
payments are due.
For many senior adults living on a fixed income with little savings and the need to pay medical
expenses for an ailing spouse, higher housing costs, or rising day-to-day expenses, an offer of
instant cash can seem like a blessing but it can lead to big trouble!
These offers take advantage of seniors by promoting a low introductory rate and then in the
hard-to-read small print disclose that the rate will adjust up as high as 24%. All that most seniors
can afford to pay each month is the minimum payment, with very little going to reduce the
balance. Seniors can find themselves making payments the rest of their lives. So, what started off
as a blessing quickly turns into a nightmare.
Households headed by someone 75 or older, with debt, increased substantially in 2004 to 40.3
percent from 29.0 percent in 2001, according to a recent study by the Employee Benefit Research
Institute. This mounting debt is putting their ability to finance their remaining retirement at risk.
For many seniors, there is another option.
A Federally-Insured Reverse Mortgage enables
homeowners 62 and older to turn part of their home’s value into immediate cash for any purpose
and with no repayment for as long as they live in their home: a program designed to help seniors
maintain their independence and stay in their home. Since there are no monthly payments, there is
never any risk of losing the home. With five plans to select from, senior homeowners may
customize their reverse mortgage to best meet their needs.
Unlike high-interest credit cards or consolidation loans, the reverse mortgage program offers a
low interest rate. Past credit history and income are not used in qualifying for the program, and
the money received is tax-free and does not affect Social Security or Medicare benefits. Seniors
may use this money to pay off debts or an existing mortgage to eliminate the payments. Also,
they may receive extra money they need for medical expenses, home repairs, or unexpected
financial needs.
Once senior adults start taking on credit card debt they quickly find themselves trapped. Their
monthly payments decrease the money they have to live on, causing them to fall deeper and
deeper into debt.
Some even find themselves using one credit card to make the payments on
another. With a reverse mortgage they have no monthly payments to worry with, so they are able
to get the money they need without falling into a trap. Plus, seniors retain ownership and control
of their home. It’s smart money for many senior homeowners!
for more reverse mortgage information visit nrmec.org