Managing credit cards for someone with dementia requires careful planning and ongoing oversight to protect their financial security while respecting their dignity. Dementia can affect memory and judgment, leading to missed payments, unusual spending, or vulnerability to scams. Early recognition of these signs allows families to take proactive steps.
Start by monitoring credit card activity closely. Setting up alerts for large or unusual transactions can help catch problems early. Consider establishing joint accounts or adding a trusted family member as an authorized user to assist with managing payments. Simplifying finances by consolidating accounts and setting up automatic bill payments reduces the risk of missed deadlines.
Legal preparations are essential. A financial power of attorney should be arranged while the person still has the capacity to make decisions. This legal document allows a trusted individual to manage credit cards and other financial matters if the person becomes unable to do so. It is also wise to review and update wills, trusts, and healthcare directives at this stage.
Protecting against fraud is critical. People with dementia are often targeted by scammers or may unintentionally share sensitive information. Shredding financial documents, avoiding unsolicited calls, and using fraud alerts from banks and credit card companies can provide extra layers of security.
As dementia progresses, the person may need to stop managing their own credit cards entirely. The designated power of attorney can then take over to ensure bills are paid and finances are handled responsibly. Throughout this process, communication and respect for the person’s independence and preferences remain important.
Some financial institutions offer specialized services for people with dementia, such as third-party access or accounts designed for carers to help manage spending. Exploring these options can provide additional support tailored to the needs of someone with cognitive decline.
Sources
https://www.olderaleighfinancial.com/orfg-resources/when-memory-and-money-intersect-signs-of-dementia
https://www.solace.health/articles/what-to-do-after-dementia-diagnosis
https://www.santander.co.uk/personal/support/supported-banking
https://www.fintechfutures.com/fintech/uk-fintech-sibstar-launches-to-help-people-with-dementia-manage-their-spending
https://www.ama-assn.org/medical-residents/medical-residency-personal-finance/understanding-debt-credit-scores
