The Risks of Carrying Credit Card Debt into Retirement and Strategies for Financial Security
Monday, 18 March 2024, 11:36
Why Credit Card Debt Poses Challenges in Retirement
Carrying credit card debt can be a burden at any age, but it becomes particularly problematic in retirement due to the fixed income constraints.
Gen Xers and Baby Boomers Debt Statistics:
- Gen Xers have an average credit card balance of $8,870.
- Baby boomers hold an average balance of $6,601, making it a significant liability.
Managing Credit Card Debt in Retirement
Consolidating credit card debt into fixed-rate loans, such as home equity loans or personal loans, can provide retirees with stable monthly payments and ease financial stress.
Tip: Consider taking on a part-time job to accelerate debt repayment and build a savings buffer.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.