Title:Cognitive decline and finances

A recent Georgetown study concluded that in the years prior to an Alzheimer’s disease or other memory disorder diagnosis, credit scores begin to weaken and payment delinquency begins to increase.

“Most memory disorders aren’t diagnosed until symptoms are severe, yet, given the progressive nature of disease, cognitive decline usually starts many years prior,” says health economist and the study’s lead researcher, Carole Roan Gresenz, a professor in Georgetown’s School of Health and McCourt School of Public Policy. “The earliest changes in cognition might not be noticeable by family members and friends, but may be quietly compromising financial decision-making.”

For the study, Gresenz teamed up with collaborators from Georgetown, including a neurologist who specializes in memory disorders, as well as researchers at the Federal Reserve Bank of New York. They examined the effect of undiagnosed memory disorders on credit outcomes using nationally representative credit reporting data merged with Medicare data (all anonymized). Credit cards and mortgages are the primary components of debt among those 70 years and older.

According to Gresenz, increased credit card delinquency was observed more than five years prior to diagnosis, while mortgage delinquency was seen three years prior.

“The results are striking in their clarity and consistency,” she added.