Retirement should be a time of relaxation and finding enjoyment away from the workforce. Unfortunately, that’s not always the case as some retirees, Tennessee residents included, find themselves in tight financial situations after retirement. Mounting debt can make what are supposed to be relaxing years into very stressful ones.
Some retirees and military veterans rely on a monthly pension payment to help pay for their expenses. In many cases, however, the amount received each month is not enough to keep them financially stable. Certain companies are offering advancements on pension payments for those struggling financially but are driving those who take their offers further into debt. Pensioners are given one large payment from the company, but while the sum may be beneficial at the time received, the extremely high interest rate payments later tend to cancel out any immediate relief.
There is an investigation into programs like these pension advance firms to see if they are committing fraudulent acts. These companies tend to charge several hidden fees and even require the pensioner to take out a life insurance policy. It is unclear whether these firms are using any illegal means to acquire their clients, but a few states are beginning investigations. Tennessee pensioners should be aware of the possible unlawful acts of these programs in hopes of avoiding further debt.
Some of the victims of this type of program claimed to have had no other way out of their financial burden. However, filing for bankruptcy can often bring a fresh start and help deal with mounting debt. Gathering information on the different types of bankruptcy laws in Tennessee and which type could fit an individual’s situation can bring a renewed sense of hope. Debt can cause stress that feels crushing, and finding a way out from under it can bring a great sense of relief.
Source: CNN Money, “Seniors losing savings to ‘pension advance’ firms,” Melanie Hicken, May 21, 2013