Nearly 50% of older adults carry credit card debt. Here's how to get rid of yours now.
Your golden years should be a time of financial security and peace of mind, yet for a growing number of Americans over 50, retirement dreams are being weighed down by an unexpected burden: credit card debt. According to a recent AARP survey, nearly half of adults aged 50 and older carry credit card debt — and it's not just pocket change. More than half of the older adults surveyed have a balance of $5,000 or more, with many respondents saying they're using credit cards to pay for essentials like groceries, housing and medical expenses. That kind of debt can weigh heavily on your mind, especially as retirement gets closer and fixed income becomes a reality.
What's even more worrying is that this doesn't appear to be a short-term issue. Two-thirds of survey respondents who feel financially insecure say they have used a credit card to pay for basic living expenses that they did not have the money to cover in the last 12 months — and say credit cards are being used for an average of five months out of the year to cover basic living expenses that could otherwise not be covered. That kind of reliance on credit card debt isn't just a financial nuisance, either. It can quietly chip away at your peace of mind and financial security. And with credit card interest rates as high as they are — now averaging about 22% — it's easy to see how a manageable balance turns into a mounting burden.
Perhaps the most sobering stat of all, though, is that nearly half of the financially insecure older Americans surveyed say they have cut back on basic expenses, skipped medical care, forgone prescriptions and saved less to try and get rid of their credit card debt. If you're nodding along, just know this — there is a way out. Whether you're still working, semi-retired or living on a fixed income, there are practical steps you can take now to reduce or eliminate that credit card debt for good.
Find out how the right debt relief strategy can help you get rid of your debt now.
How older Americans can get rid of their credit card debt now
You don't need to be a financial expert to dig yourself out of credit card debt. What you do need is a solid plan — and maybe a little help. Here are some smart strategies that could work if you're facing this type of issue at age 50 or older:
Consider a debt consolidation loan
A debt consolidation loan rolls all your high-rate credit card balances into one single, lower-interest loan. This is especially helpful if your credit is still in decent shape and you're making monthly payments but not seeing progress. Instead of juggling five cards with 22% interest rates, you could end up with one manageable payment at a lower rate. For older adults, this approach can bring structure and predictability — and fewer missed payments. Just be sure to check the terms carefully and avoid loans that extend your payoff date without real savings.
Chat with a debt relief expert about your options today.
Explore a debt management plan
If the idea of negotiating with creditors feels intimidating, that's where a credit counseling agency can step in. Credit counseling agencies can enroll you in a debt management plan, where they work directly with your creditors to lower interest rates and waive late fees. You'll make a single monthly payment to the agency, which then pays your credit cards on your behalf.
Debt management plans are a solid choice if you're still earning income and want to pay your debt back in full, but need some structure and relief from fees. For older adults who want to stay in control but need a guiding hand, this type of strategy can be a huge help.
Look into a debt settlement program
If your debt is simply too much to handle and you've fallen behind on payments, debt settlement might be the most realistic option. These programs work by negotiating with creditors to accept less than the full amount you owe — sometimes up to 30% to 50% less than what your full balance is.
This approach can hurt your credit in the short term, but if your score has already taken a hit and you're facing serious hardship, it may be worth it. It's important to work with a reputable debt relief company, though, especially one that understands the unique needs of older adults — like the importance of protecting retirement savings and minimizing stress.
Downsize or unlock equity if possible
While this approach is not for everyone, some older homeowners may want to consider downsizing or using a home equity loan or home equity line of credit (HELOC) to pay off high-rate credit card debt. This should be done with caution — your home is your most valuable asset, and using it as collateral can put it at risk of foreclosure if you default — but in some situations, it can be a strategic move to trade high-rate credit card debt for a home equity loan or HELOC at a much lower rate.
The bottom line
Credit card debt is a growing burden for nearly half of older Americans, but it doesn't have to define your financial future. Whether you're still working, semi-retired or fully retired, there are solutions — and many are designed with people like you in mind.
The key is to face the problem head-on and take the first step, whether that's settling your debt, tapping into home equity, calling a credit counselor or exploring a consolidation loan. The sooner you start, the more options you'll have — and the sooner you can breathe a little easier. Because the truth is, you've worked too hard for too long to let credit card debt steal your peace of mind in retirement.
