3 tips for tackling debt as a senior

Debt among seniors is on the rise. If you or someone you know is struggling financially, these three tips can help.

1. Create a budget. Figure out precisely how much money you earn, spend and save every month. See where you can tighten your spending. Start by asking yourself which of your small, recurring expenses you can reduce or eliminate.

2. Prioritize debts. Determine the interest rate for each of your debts. Make the minimum payments for each debt, and then funnel whatever else you can afford towards the debt with the highest interest rate.

3. Renegotiate with creditors. Discuss your financial situation with your creditors and determine if they might lower the interest rate on your debt, consolidate your debts into one loan or stretch out your payments over a longer timeframe. Reducing your minimum monthly payments can help you stay solvent while paying off your loans.

Finally, if you need extra help, be sure to get it. Contact an accredited not-for-profit credit counselor, a financial adviser or a licensed insolvency trustee. These experts can help you evaluate your debt situation, make a budget and develop strategies to pay off your debt.

If you have financial problems, expert advice can be extremely helpful. However, be cautious about who you trust with your personal information, and be particularly wary of debt settlement companies. These organizations are usually for-profit businesses and many engage in high-pressure sales practices and make false claims. Only work with reputable debt settlement companies that are accredited and willing to provide you with references.