Finding the right language: Debt collections and seniors

Seniors have become a unique sector of the indebted consumers in America, and this population of adults 55 and older requires a special system of communication when it comes to debt collection and credit decisions. According to Rozanne Andersen of InsideARM, Baby Boomers are struggling with underemployment and unemployment, and are increasingly susceptible to the recession as they age and depart the workforce. Many of these adults are also stuck supporting their adult children and aging parents financially. Seniors also tend to have lower incomes than other age demographics, causing them to sink faster into debt. "Seniors are using their credit cards to fund income shortfalls and to pay medical debt," Andersen writes. "Today, 41 percent of eligible workers over the age of 55 have credit card debt equal to or in excess of their savings." In a 2009 study, Demos, a public policy group, found that one in three senior households had no extra spending money after covering essential expenses. Andersen suggests that debt collectors and similar companies take special care when communicating with senior customers. These adults are typically loyal to well-known service providers, unlikely to change insurance companies or banks and are very habit driven. Personal service and face-to-face communication are preferred by seniors, she says.