Not Your Parent’s Great Depression

I just read some really harsh and little known statistics about the Baby Boomer generation that I want to share with you. A quarter of the more than 1 million Americans who filed for personal bankruptcy in 2007 are 55 and over. They are the fastest group of bankruptcy filers in America. In fact according to an AARP study conducted last year, personal bankruptcy filings soared by nearly 151% among people 55-64 and by almost 178% among those 65 to 74. People 75 and older saw the highest jump in filings, a whopping increase of 567% from 1991 to 2007. These are astonishing statistics, especially for the generations of people who grew up thinking that bankruptcy was a shameful occurrence. The reasons for bankruptcy and financial crisis are different for those over fifty compared to those who are younger. Most often it’s not due to excessive spending, but rather the bankruptcies may be attributed to high health care costs due to serious illness and expenses not covered by insurance. Also, some seniors go into debt trying to help their children or grand children during these difficult times. No matter how old we get, it is in our nature to take care of our children first.  Those over fifty also tend to use their credit cards to charge necessities like groceries, unanticipated home repairs and especially medical expenses and prescription drugs.

According to Seniors World Chronicle, our generation tends to want to pay their bills. They find the experience of being in financial default as shameful and not something they take lightly. On the whole, they would rather do almost anything than be delinquent on their bills. It is sad that in this current economic climate, there are few services and very little support to educate this age group as to where to go for help. However, several bills are currently in Congress that address this issue. If they pass, they should somewhat help remedy this situation.

 Dr. Dorree Lynn  says that you don’t have to go through a bankruptcy or an extreme financial crisis in order to feel anxious about financial issues. Even those who are well off are uneasy in these financial times and want to cut back. I am not a financial analyst and cannot advise those over 50 where to put their money. However, I can pass along some advice that might be helpful for those who are particularly anxious and depressed to during these difficult times.

Don’t panic and rush to shift your money without sound financial advice. If you feel the urge to immediately act, don’t. Take a deep breath. Take a walk. Talk to someone, sleep on your decision (even if you have trouble sleeping) and let your fear subside. Continue with your exercise, keep your hobbies, visit your friends, and remain active in your community and/or place of worship. Maintain the routines and connections that have always kept you stable. You need to think about other things besides money. Otherwise, you can obsess yourself into emotional despair and even illness.

Talk to your family, especially your grown kids. If you’ve been helping them, now is the time when they can stretch some and pay you back. There is no shame in asking them for help. After all, you have given to them for years and they will probably be more than willing to sacrifice a little more if they really knew how worried you were.

Try not to irrationally lash out. This is the time to keep a cool head.  When people are scared, they tend to freeze like ice and are unable to think, they may curl up in a ball or lash out at loved ones. While none of these are useful behaviors, the latter is particularly unhelpful and unfair. It helps to understand that when someone lashes out at a loved one, it is almost always because that is the relationship where they feel safest to unload their feelings and concerns. 

Reach out and make love.  Whether it’s intercourse, or just talking, touching or keeping connected. Being with loved ones and keeping community remains one of the best antidotes to anxiety, depression and obsessing. Love still makes the world go round. And it’s never needed more than when times are tough. Remember that life really is too hard to do alone - reach out.

Experts predict that this financial crisis is going to be with us for a while.  It’s going to take some time to stop the momentum and turn things around to where we are prosperous again, so the best thing we can do is deal with our situation honestly and put it in perspective.  After all, our parents survived the Great Depression and they say this recession isn’t going to get as bad as that bad.’; //leave this line

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