According to recent research from the New York Federal Reserve and Georgetown University, credit scores could potentially serve as early indicators of cognitive decline. The study found that individuals' credit scores begin to weaken an average of five years prior to a diagnosis of dementia. Furthermore, mortgage delinquencies tend to increase three years before a diagnosis.

To arrive at these conclusions, researchers analyzed a nationwide sample of credit reports and Medicare data from over 2.4 million people spanning the years 2000 to 2017. While not everyone in the early stages of Alzheimer's disease and related disorders (ADRD) may experience financial difficulties, those who do often face significant changes in their delinquency rates.

The analysis revealed that, one year before a dementia diagnosis, average credit card balances in delinquency increased by over 50%. Additionally, average mortgage balances in delinquency were found to be 11% higher in the same period. Extrapolating from this data, researchers estimate that approximately 600,000 delinquencies related to yet-to-be-diagnosed ADRD will occur over the next decade.

The researchers propose that credit reporting data could be helpful in identifying individuals at risk of memory disorders at an early stage. This aligns with a 2020 study that demonstrated how Medicare beneficiaries who are clinically diagnosed with dementia are more likely to miss bill payments as early as six years before diagnosis.

Dementia, a progressive brain disorder that impairs memory and cognitive skills over time, affects around 15% of U.S. adults aged 70 or above. The Centers for Disease Control and Prevention reports that in the U.S. alone, there are approximately 5.8 million people living with Alzheimer's disease and related dementias, with 5.6 million of them being 65 years or older.

The researchers' goal is to develop an algorithm that can predict the likelihood of an individual developing Alzheimer's in the future. This tool could assist doctors in determining whether further screening is necessary and potentially serve as a low-cost and scalable alternative to mass magnetic resonance imaging (MRI).

Economist Wilbert van der Klaauw, an economic research adviser at the New York Fed, emphasizes the importance of family and friends being aware of signs such as sudden acquisition of new credit cards. Such financial difficulties can arise long before a formal diagnosis, and it is vital to address these challenges early on.

Carole Roan Gresenz, a professor at Georgetown University, suggests initiating conversations to prevent financial difficulties associated with dementia before they arise. These difficulties can make individuals more susceptible to financial abuse, fraud, and scams such as identity theft or get-rich-quick schemes.

The Alzheimer's Association agrees that early identification of potential signs of dementia is crucial, as it can help mitigate financial risks and enable quicker financial planning for both the affected individuals and their families. While treatment options for Alzheimer's and memory-related disorders are limited, early diagnosis can lead to proactive measures that safeguard the well-being of those affected.

Monica Moreno, senior director for care and support at the Alzheimer's Association, warns that managing personal finances for a loved one with Alzheimer's can be challenging, particularly when done independently and privately. She recommends paying attention to other disease-related warning signs and promptly intervening to provide support and ensure effective financial management.

As further evidence accumulates that challenges managing money can serve as early warning signs of dementia, it becomes essential for family members to be vigilant and address potential signs promptly. The Alzheimer's Association offers suggestions for assisting loved ones who are struggling with their finances.