Mental health and Credit Card Use: Protect Your Loved Ones

As the population ages, more and more seniors are showing signs of dementia. All types of dementia are on the rise around the world, and in Canada. As a result, it is important to monitor the spending of you affected loved ones. Dementia can result in expensive purchases with credit cards -- and there is little you can do if the business won't let you return merchandise bought someone with dementia. Even murkier are the concerns surrounding those with other mental health issues.

Dementia and Credit Card Spending

Many seniors, reports Ellen Roseman in the Toronto Star, begin spending a great deal when affected by dementia. Many older patients, especially those with Alzheimer's disease, might begin to lose their inhibitions about money, and begin spending more. Roseman shares the story about a 78 year old woman who began -- uncharacteristically -- buying jewellry using credit cards. Her bill reached nearly $13,000 before her husband realized what was happening and took action.

Even though the woman was diagnosed with Alzheimer's, her husband is having trouble returning some of the jewellry she bought. This is a common problem for those with dementia, and goes beyond credit card spending. Those with dementia might withdraw money from their bank accounts, or be more susceptible to scams. Roseman shares some ideas in her column about how to protect your loved ones with dementia from spending too much money, and we add some of our own:

• Watch for small signs of changes to money behaviour.
• Ask questions, and get a diagnosis, if you begin seeing changed behaviours -- especially with money.
• Have bank accounts and credit card accounts flagged for unusual behaviors.
• Have limits on credit cards lowered, as well as transactions at the bank monitored.
• In some cases, it might be a good idea to have a financial guardian appointed.

What About Other Mental Health Issues and Credit Card Spending?

It's not just dementia that can affect mental health. Other mental health issues can impact financial decisions. From decisions about investments, to purchasing decisions, mental health issues can lead to poor money choices.

In addition to spending a great deal with credit cards, there are other money issues that come with mental health problems. Those vulnerable anxiety and depression might have a hard time coping with complex issues and making decisions about money. It can be intimidating, and sometimes it's easier to let things slide, or it feels good to just whip out the credit card and buy something.

We all have moments in which we are vulnerable. Many of us have our own issues with making poor money decisions during times of stress. Imagine if that situation was a regular part of life. It would be difficult to function making complex money decisions. This also applies to mental health issues that can arise from difficult situations in life, such as divorce. Getting help for your loved ones caught in poor money choices is important, especially when there are mental health issues involved.

Bottom Line

It is important to be aware of what is happening with your loved ones. Aging loved ones may fall prey to dementia, or you might have friends or family with mental health issues. Pay attention to changes in money behaviour, and work to limit the damage that your loved ones do to their finances through out of control credit card spending and other poor money decisions.

Image source: Frank Mayne via Wikimedia Commons

This post was included in the Carnival of Personal Finance at Dealerity.