Why are so many AARP members in dept?
We need to look back to 2006 when the property market began to decline and many people who had gambled on rising prices to pay off mortgages suddenly found themselves exposed. The banks had actively encouraged people to borrow more than they could repay, which is the reason so many banks have now failed.
The loss of faith in the banking sector spread quickly to the stock market this year and suddenly AARP members found their retirement funds had lost value Those AARP members approaching retirement having to make the hard choice of delaying retirement or retiring on a smaller pension.
October and November have seen many companies laying off workers and quite often those laid off are the older workers, often AARP members who are on relatively large salaries as a result of pay rises in boom times, who can be replaced by cheaper labour.
So how can members of AARP improve their situation and get out of dept. They need to cut all unnecessary spending and use cash rather than credit and find additional sources of income with part time jobs or by setting up their own business.