ONE NATION UNDER DEBT By Jay Weller

My name is Jay Weller. I am an attorney. My practice consists entirely of helping people manage debt. I have probably filed more than 20,000 bankruptcy cases and represented thousands more through our non-bankruptcy debt consolidation programs.

The average American owes more than $8000 in credit cards bills. Additional debt is incurred through home, automobile and other loans. Someone once asked me what is the typical person that comes into your office. The answer is: "Look outside. Everyone is in debt."

Seniors, in greater numbers, are experiencing growing debt. According to a recent report by SRI Consulting, only 41.2% of older households carried no debt last year, down from 65.6% in 1992. The average amount owed by persons over 65 during that same time has grown from $8000 to $23000.

Having seen so many people over the last ten years what I have learned is this: Every generation of people that have debt are different, and their differences usually determine the source of their debts, and how they approach the problem of debt.

The World War II Generation, commonly referred to as Senior Citizens, embody the ideals of self-sacrifice, hard work, frugality, and honesty more than any other. Those ideas were necessary to endure the Great Depression and fight World War II. Those ideals also created the greatest economic and political empire in the history of the world.

That is why this generation is now being referred to in larger numbers as the Great Generation.

These ideals also determine why seniors typically have debt, and how they approach a solution to that problem. Seniors more than any other group are in debt because of factors beyond their control.

Most Seniors I have seen have credit card debt as their biggest problem. That debt was incurred usually to either pay for the high cost of prescription medicines, to help children or grandchildren, or because they are no longer working and cannot afford to make payments on Social Security.

Seniors will also struggle harder and longer to make those credit card payments. More than any other group, seniors will sell or liquidate assets to make their monthly credit card payments.

A recent client who came into the office was retired about three years and had about $30,000 in credit card bills. His original debt was much higher. He had liquidated all his retirement savings, including a large IRA account and a 401k account, along with other assets, in order to pay his credit cards. He now had to get a job to continue his payments because most of his assets were gone.

The point is this: If you are in debt, you are not alone. There are ways to take care of these problems. Seek help before you make decisions, which can impair your retirement and eventual welfare. If you are a member of the Great Generation, the great ideals you embody can also hurt you when it comes to your finances.

Julian Credit Management is a firm that practices exclusively in the area of Bankruptcy and Debt Consolidation and has offices in Clearwater (Pinellas County), Port Richey (Pasco County), Tampa (Hillsborough County), Lakeland (Polk County) and Orlando (Orange County). We represent persons throughout the State of Florida.

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