Keeping seniors out of debt.

• Position: Retirement

Silver-haired debt is ruining a lot of retirements these days. While staying out or getting out of financial troubles often is more difficult for seniors than for younger age groups, it can be done with some careful planning. According to SRI Consulting Business Intelligence, Princeton, N.J., seniors are relying on credit cards, running up record debt and filing for bankruptcy much more than they did a decade ago. None of this is surprising. The bear market and low interest rates for fixed-income investments have crippled the portfolios many draw on for living expenses.

Adding to their woes are skyrocketing medical costs, coming at the same time employer retiree health benefits have been reduced or eliminated. Moreover, they typically do not have employment income to bail them out. If you are retired (or soon will be), here are eight tips to help keep you solvent.

Overcome your pride. Many are too proud or embarrassed to admit they have debt problems or to ask for help in getting out of them. Talk to someone close to you who understands personal finances. Better yet, consult with a competent financial planner or see a credit counselor.

Stop giving money to your children and grandchildren. Sure, you love them, but they will understand if you cannot afford to loan them money or finance college. Otherwise, you could end up being a financial burden on them.

Budget. Workers commonly believe they will spend 20 to 30% less in retirement than they did while on the job. Yet, many retirees find they spend as much or more. They may incur heavy health care costs or may not have sufficient retirement income. (Four in 10 rely primarily on Social Security.) A budget can align expenses with income, and free up extra dollars to pay down money owed.

Go easy on the credit cards. Seniors often pay for prescriptions and other medical expenses they cannot otherwise afford by...