More and more seniors are struggling with debt and unclear finances. Best Bank receives more inquiries from seniors who struggle to make everyday life go up. According to the latest Lindorff analysis in 2019, the number of collection cases associated with individuals over the age of 60 has increased by around 40 per cent since 2012. Experts expect this trend to continue.
This is a consequence of the changing lifestyle of the elderly. They travel more, have more leisure activities and generally a higher consumption than before. Several also choose to assist their children financially, says Luther Holmstald, Marketing Manager at Best Bank.
The transition to retirement life can be challenging for many. After a long working life, it is natural to have become accustomed to a lifestyle that may not be compatible with retirement. We see that more seniors are struggling with this transition, says Holmstald.
Get control – the first step is to get an overview
To get a good economy, financial overview is a prerequisite.
Many people do not have an overview of their debt. They often have the debt spread over several creditors and repayment plans. This makes it difficult to have a good overview and thus difficult to make good financial choices, says Holmstald.
At the heart of Best Bank’s work is to create a debt overview with the customer.
This is the first step to getting a better economy. Once you get an overview, it is easier to decide how to clean up the debt, explains the marketing manager.
The second step is to collect the debt
Many customers find it easier to report to debt when it is collected.
It is easier to deal with one creditor, with fixed installments, versus many smaller ones, each with their requirements at different times. We find that our customers get a better economy after collecting the debt in one place, Holmstald elaborates.
Collecting the loans provides predictability, but usually also better terms.
We have had several customers who feel they are getting better loan terms after refinancing. It’s often the small loans that are the most expensive and if you manage to get rid of the small loans then it’s a good step in the right direction, says Holmstald.
Housing loans are becoming more common among the elderly
One move that has become more common among the elderly over the past few years is to move the debt into the mortgage.
Many elderly people have paid down housing while also having consumer debt. Refinancing the home and moving the mortgage loans into the home loan will often lead to better terms. We can help you to assess whether this is a good solution for your finances, explains Holmstald.
Contact: – We can help
Best Bank are experts in private finance. If you need to clean up your own finances or want to know what options you have, the bank’s advisors are ready.
We have helped people in all different economic situations. If you come to us, we will help you get an overview and make good financial choices. Often it’s not the big colds that are needed, ”concludes Holmstald.