Not all signs of dementia, especially in its early stages, are physical. Some early clues may be financial.
In a new report, New York Federal Reserve researchers analyzed credit reports and Medicare data and found that approximately five years before someone was diagnosed with dementia their credit score began to dip and the number of payment delinquencies began to go up.
It was even more clear that something was going wrong if that person had been very responsible with money throughout their life.
“Years prior to eventual diagnosis, average credit scores begin to weaken and payment delinquency begins to increase, overall and for mortgage and credit card accounts specifically,” the report’s authors wrote. “Credit outcomes consistently deteriorate over the quarters leading up to diagnosis.”
The researchers said the harmful financial effects of diagnosed memory disorders exacerbate the already substantial financial pressure households face upon diagnosis of a memory disorder.
“Our findings substantiate the possible utility of credit reporting data for facilitating early identification of those at risk for memory disorders,” the researchers concluded.
What to look for
Here are things that family members should look for when helping older relatives:
Unorganized, sloppy and incomplete financial records, such as checkbook registers
Late payment notices, especially if they are being ignored
Letters from the Internal Revenue Service about unpaid taxes
Overspending, especially on things that aren’t being used
The Fed report said the range and complexity of financial decisions in which households engage underscore the role of cognitive function in financial behavior. These include balancing consumption and savings over an uncertain time horizon, optimizing performance while mitigating risk in an asset investment strategy, and determining whether to initiate debt and the structure of such debt.
When confronted with this change in financial behavior, the researchers say that is a cue for family members to seek medical attention, saying these financial cues may appear long before physical symptoms.