The Challenge of Managing Credit Cards with Dementia
It's undeniable that individuals with dementia-related illnesses will ultimately face difficulties managing their everyday finances. For my father, it was the initial indication that something was amiss.
I was always astonished by his ability to solve complex math problems in his head without ever needing a calculator, just like a true mathematician. However, I suddenly realized he was struggling to even balance his checkbook accurately.
Difficulties with handling finances often serve as an early indicator of dementia. Challenges like counting change, piles of unpaid bills, or numerous unnecessary charges on credit card statements can reveal the problem. Sadly, this might go unnoticed until significant debt has already built up.
Regrettably, countless dishonest individuals are eager to exploit those with memory impairments. Telemarketers, charity scams, health care fraud, and even door-to-door solicitors can be incredibly ruthless to those who are vulnerable targets. Look for large numbers of packages being delivered, sudden changes in their bank account balances, and overdue bill notices.
One possibility is to redirect their mail to a P.O. box, allowing you, as the caregiver, to monitor the situation directly. However, you might discover, as I did, that there is seldom enough time to pick up the mail.
Consider replacing their credit cards with prepaid ones and limiting the cash they carry. With my father, I always ensured he had a little money on him so he felt a sense of independence. However, he often attempted to pay people for services he didn't owe, including Hospice nurses visiting the house. In most cases, he would ask me to handle the payment.
If you discover they have already amassed a credit card debt of $10,000, you should request a free credit report in their name. This report will indicate when each account was opened. If you notice that any accounts were opened after the onset of dementia symptoms, those accounts might not be legitimate. It's essential for a person to be fully competent and of sound mind when entering into a contract. Additionally, verify whether they enrolled in credit card insurance, as this could be beneficial in managing the repayment.
Request their doctors to provide a letter confirming their cognitive impairment and indicating when the symptoms first appeared. If they are living in an adult care facility, ask the administration to issue a letter certifying that they are currently receiving care there.
You can find some reassurance in the fact that credit card debt collectors cannot garnish Social Security funds. However, pensions and personal savings are at risk.
If this situation results in you needing to represent them in court, it's essential for the judge to examine these documents. If you haven't already spoken with an elder law attorney, I recommend doing so right away. Any fees incurred will likely be worth it, as having the right legal guidance can significantly impact the outcome.
This is why appointing a trustworthy person as Durable Power of Attorney early is crucial. As the Power of Attorney, it is essential to consistently add P.O.A. after your signature whenever you sign documents on their behalf. This practice safeguards you. Additionally, understand that your rights as a P.O.A. will end when they pass away.
We must remain constantly vigilant in safeguarding our loved ones who are suffering from this terrible disease. There are indeed opportunists lurking everywhere, ready to take advantage at any given chance!
Gary Joseph LeBlanc, Director of Education
Dementia Spotlight Foundation - dementiaspotlightfoundation.org
