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Finding a Solution: The True Cost of Aging in America

Finding a Solution: The True Cost of Aging in America

People are living longer than ever before. At first, that sounds like a good thing. Who doesn’t want more years to spend with their loved ones? Unfortunately, many people are paying the price for their long lives. Long-term care, particularly in assisted living facilities and nursing homes, can quickly become expensive. Nationwide, it costs an average of $43,200 a year to live in an assisted living facility. Move to a nursing home and that cost skyrockets to over $80,000 for a semi-private room or $90,000 for a private room. In some areas of the country, it’s even higher. In California, for example, the cost of a private room in a nursing home averages around $100,000 a year.These costs simply aren’t affordable for many aging adults, especially for those who never planned to outlive their retirement income so substantially. While advances in medicine have made it possible for aging adults to live high-quality lives longer than ever before, unfortunately, in many cases, their retirement savings are depleted long before that point. The solution? “Aging in place,” which allows adults to stay in their own homes for longer. Here are some of the options to make this a more viable solution.

Home Care Services

Home care services, which may be paid for by Medicaid, allow elderly individuals to get the care that they need in their own homes. They can receive basic medical care services, help with personal care, and even get transportation to and from medical appointments. In some cases, home care services will also include meal preparation or provision. The median cost of six hours of care from a home health aide is around $30,000 per year — much less expensive than an assisted living or nursing home facility. In addition, some individuals need less assistance than others, which reduces these expenses. It is for this reason that Medicaid has programs in place that provide home care for many individuals who do not require institutional care.

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Adult Day Care

Adult day care is more than just a place where your elderly loved one will be looked after in a secure setting. It’s also an opportunity for them to socialize, participate in activities, and have their basic medical needs seen to. The median cost of adult day care is $17,904 per year. If no other home care services are necessary, adult day care can significantly improve an aging individual’s ability to keep their retirement savings in place for much longer than if they had been in a nursing home or assisted living facility.

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Home Modification

When your elderly loved one purchased their home, they likely weren’t considering their needs as they aged. Things like wheelchair ramps, widened doorways, and accessibility options for showers and bathtubs can drastically improve your loved one’s ability to remain in their own home. While Medicaid and Medicare may do not cover physical modifications to the home, some states offer special pilot programs that can help with home modifications. If your state does not cover these modifications, they are acceptable expenditures in terms of using your loved one’s existing assets and can be used to lower that asset amount to meet Medicaid thresholds. The Medicaid “spend down” can be quite complex for the uninitiated, and it is therefore recommended that you reach out to a long-term care Medicaid eligibility expert or educate yourself fully and learn as much as you can about the process.

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Looking Forward

While the current health care model is working, it’s evident that the state cannot support the needs of an aging population indefinitely. Many revisions are needed to the system in order to ensure high-quality care for aging individuals in America. It’s going to take personal planning as well as public planning to avoid a crisis. Going forward, retirement age may shift to reflect the change in life expectancy. Improving the health of older adults to allow them to remain active and productive members of society longer will also contribute to the solution — but it’s not a perfect fix. In addition to steps taken by the population as a whole, personal planning is necessary in order to ensure that aging adults will be able to provide for their own needs for the duration of their lives.

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How to Pay for Senior Care Finding a Solution: The True Cost of Aging in America

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

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