Strategies for Limiting Future Debt
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If you are a senior living on a fixed income it may seem impossible to get by without using credit cards to pay your bills. But if you already have credit problems it will only make things worse to continue borrowing or using credit cards. Below are some suggestions that may help you avoid adding any more to your debt load.
Medical Expenses. Many seniors have credit problems because of large medical bills that are not covered by Medicare or insurance. If that is your situation be sure you are getting all the help to which you are entitled.
Contact your local Department of Human Services(DHS) to see if you are eligible for Medicaid assistance. (DHS is listed in your phone book under state government numbers. You can also find out this information by visiting the DHS website.) Depending on your income and assets Medicaid may pay for all your medical expenses including prescriptions or for only some expenses such as Medicare premiums, co-pays and deductibles.
Also, make sure that you are enrolled in the new Medicare Prescription Drug Plan. You may be eligible for additional financial assistance to help cover the costs of your prescription drugs. You can find out more information by calling the Legal Hotline at 1-800-347-5297 or visiting www.medicare.gov.
Housing Expenses. Michigan has various programs that help seniors who are having trouble paying their property taxes or special assessments.
Your city or township is required to have a procedure to request a hardship waiver from property tax or special assessments if your income is low. There is a state homestead property tax credit which can pay up to $1200 per year depending on your income . Your Area Agency on Aging has volunteers who can help you file for the credit, which can be retroactive for up to 4 years. The state also has a home heating credit which must be applied for each year before the end of September.
If you are having trouble paying for necessary upkeep on your home your city office may have information about low cost loans. For individuals who plan to stay in their home, a reverse mortgage might provide the extra income to pay taxes and upkeep. (See “Reverse Mortgages.") Another option to consider is selling your home and moving to a government subsidized apartment where rent is no more than 30% of your income.
Food Expenses. It is important for seniors to get adequate nutrition.
Check with your local DHS office about eligibility for the Food Assistance Program. Your AAA will have information about other free or low cost food programs for seniors.
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