Five years before a person is diagnosed with Alzheimer’s disease or other memory disorders, there may already be signs of trouble in the form of overdue notices and falling credit scores, according to a recent study.
Researchers from the Federal Reserve Bank of New York and Georgetown University found that people diagnosed with dementia often struggle with managing their finances years before traditional symptoms emerge.
Years of Financial Trouble
The study found that credit card delinquencies for many patients began more than five years before their diagnosis. Trouble paying mortgages on time, or at all, often began three years before a medical diagnosis was made.
While people may begin falling behind on payments in the earliest stages of a memory disorder, the progression of financial trouble can mirror the progressive nature of memory loss. As bills are missed and credit scores drop, they can face increased costs like late fees and higher interest rates. This can be particularly harmful over time because the cost of dementia care in the U.S. can be so steep.
The study was led by health economist Carole Roan Gresenz, PhD, a professor at the Georgetown School of Health and McCourt School of Public Policy.
Gresenz said, “The earliest changes in cognition might not be noticeable by family members and friends, but may be quietly compromising financial decision-making.”
Widespread and Consistent Financial Concerns
The research team used the Federal Reserve Bank of New York’s data, which included information from the credit reporting company Equifax and the Center for Medicare and Medicaid Services, for the widespread study that examined information on more than 11 million households.
“The results are striking in their clarity and consistency,” Gresenz said. “The financial decline we observe mirrors the cognitive decline that these individuals are experiencing: credit scores consistently decline, quarter by quarter, and probability of delinquency consistently increases as diagnosis approaches.”
The research team suggested that in light of this new study, credit reports may be a surprising tool for families and medical teams to use when determining whether changes in their loved one’s behavior may be tied to Alzheimer’s or another memory disorder.
For those who wish to dive deeper into the specifics of this study and its implications, the full article published by the Federal Reserve Bank of New York is available here.
If you have concerns about early symptoms of Alzheimers’s and other dementia disorders, Lizzy Care is here to assist. Our experts can provide guidance, support, and care planning tailored to your needs.
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