When we think about credit card debt, many of us envision younger generations struggling due to student loans and a depressed economy. However, the imagery of credit crunched Americans is rapidly changing. According to a new report by Dēmos and AARP, Baby Boomers are the new face of indebtedness – and credit card debt is large contributor to their struggles. The new report establishes that people 65 and older are carrying more credit card debt than any other age group. Perhaps one of the more startling statistics is related to households headed by those 55 to 64 who have experienced a 33% increase in credit card debt since 1989.
Although troubling, it’s important to note that hope is not lost. Many of those struggling with debt have made an effort to regain control by contacting nonprofit credit counseling agencies for assistance. Certified counselors, such as those employed by Cambridge Credit Counseling, are helping this population develop sound budgets, re-engage retirement planning, and identify additional resources to stave off the specter of debt.
I encourage you to read How Boomers can Shed Debt in Retirement to learn more about the report. Also, if you’re struggling with credit card debt, please contact one of Cambridge’s counselors who will be happy to help.
Until next time, I’m Thom Fox for Cambridge Credit Counseling.