Are you drowning under the load of defaulted loan? Take heart, for you are not alone. According to the recent statics, there are millions of senior citizens just like you who are struggling to keep their credit reports clean of a defaulted loan status. With a lion's share of their limited income going towards paying the loans, they are finding it hard to manage their day-to-day expenses.

By the time people retire, a major portion of them have either paid off their loans or have a little outstanding amount to be cleared. But with the credit card it is a different story. A credit card is a very important part of our modern life. But, it is nothing more than a sophisticated form of borrowing money as you have to return it later along with the interest. Recent researches have shown that the borrowers in the age bracket of 50 and above owe about 17% of the national outstanding credit card debt with a large portion owned by the consumers who are 65 or older.

There are several ways of getting rid of a defaulted loan. If there are a number of loans, then they can be turned into one through consolidation. The repayment period can be extended in order to be able to pay off the debts through easier terms. If nothing else helps then there is the Chapter 7 Bankruptcy filing. Even though it doesn't sound so good, it might be the only way around in times of dire distress. After the applicant passes some qualifying tests, all their debts are forgiven. The bankrupt status is removed from the credit report after about 7 years.

Among the various ways of getting rid of the outstanding debt the best suited for credit card loans is debt consolidation. It works best for the debts that have different rates of interest and credit cards tend to have different interest rates. It allows the borrowers to either reduce the rate of interest or increase the repayment period. But if the balance is transferred to a card with a lower rate of interest, then the cardholder might get some benefits. However, the banks and the credit card providers are tightening up their barriers and putting breakers in the ways of the card holders to stop them from doing so.

The consequences of a defaulted loan are not unknown. The fact that a majority of the population is on the wrong side, doesn't make it the right one. So, it is best to take steps before it is too late.