Older Americans Face Growing Challenge of Credit Card Debt Before Retirement

Recent data highlights a significant issue of credit card debt among older Americans, with 52% of those aged 50-64 and 42% aged 65-74 carrying such debt. This trend is largely attributed to inadequate retirement preparedness, forcing individuals to rely on high-interest credit cards to cover expenses. Financial expert Mary Clements Evans emphasizes that unlike younger individuals, retirees face limited income growth opportunities, making debt repayment more challenging. Experts suggest refinancing credit card debt with companies offering introductory 0% rates as a viable step toward managing high-interest obligations. Additionally, cost-cutting measures like shopping for better auto insurance rates and maintaining older vehicles instead of leasing or purchasing new ones may help reduce financial strain. The article also clarifies that credit card debts are the responsibility of the estate upon an individual's death, not surviving family members, though some heirs may be mistakenly contacted by debt collectors. Overall, the advice underscores the importance of minimizing credit card balances before and during retirement to avoid excessive interest and financial stress.