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Question: My mothers health has drastically changed and she only lives on social security, a very small disability bi-weekly stipend and has medicare. While my mother has been accepted for medicaid as a secondary insurance, she will have to contribute monthly of $406 so that she will be able to have full time home health care (vs only part time with medicare). This expense will make it impossible to help her pay her credit card debts off. My mother needs to contribute to medicaid but then won't have enough to pay off her debts. What are options as far as her credit cards? Should I close them (with her on the phone) and let them know that she is unable to pay so we'd need a settlement price? Or just walk away? I am unsure of her options as my original plan was to help her pay them off one by one.

Answer:

Regardless of age, defaulting on credit card debt can have troublesome consequences. Apart from potential obstacles and headaches while alive, the debt normally passes to a person's estate after death.  Negotiating with credit card companies often has positive results, such as  lower payments over a longer time period or even reduction of the balances owed.  [REFER TO AZLawHelp, ?ealing With Debt? http://www.lawforseniors.org/articles_info.cfm?sc=80&mc=8&articleid=120