Credit card debt and adults age 50-plus

Credit card debt is the most common type of debt carried by adults ages 50-plus.  New AARP research offers insights on the experiences of older adults with credit card debt, including why

they carry credit card debt, how they are trying to pay it off, and how their credit card debt is affecting their savings. Results of this new national survey show that nearly half of

Americans ages 50-plus carry over credit card debt from month to month, including credit card debt carried over on an active card or a cancelled card.  Although credit cards can be a

convenient way to make purchases, carrying over high-interest credit card debt from month to month can be risky for those who struggle to pay off the balance as interest accrues. People who

are approaching retirement may find that credit card debt impedes their ability to save, while people who are already in retirement may find it particularly challenging to keep up with their

debt payments if they are living on a fixed income. HALF OF OLDER ADULTS WHO CARRY CREDIT CARD DEBT FEEL FINANCIALLY INSECURE. Of adults ages 50-plus who carry credit card debt, the survey

finds that half feel financially secure despite their credit card debt, while the other half feel financially insecure. Those who have credit card debt and feel financially insecure tend to

have lower incomes, higher credit card balances, and are more likely to have seen their balances increase over the past year. EVERYDAY EXPENSES AS WELL AS UNEXPECTED EXPENSES ARE TOP DRIVERS

OF CREDIT CARD DEBT. Everyday expenses, vehicle expenses, housing costs, and health care costs are common reasons for credit card debt. Nearly nine in ten (87 percent) say that unexpected

expenses have contributed to their credit card debt.  Those who feel financially insecure are especially likely to say that unexpected expenses are a big driver of their credit card debt and

to say that they rely on credit cards to get by when their cash flow is insufficient.    MANY WORRY ABOUT THE EFFECT OF CREDIT CARD DEBT ON THEIR ABILITY TO SAVE. Credit card debt and

savings are closely intertwined, with credit card debt making it harder to save and a lack of savings increasing vulnerability to credit card debt. Although both those who feel financially

secure and those who feel financially insecure worry about the effect of their credit card debt on their ability to save, this concern is especially widespread among those who feel insecure.

  Those who feel financially insecure are less likely to contribute to savings regularly and are less likely to have savings of any type. DESPITE THEIR EFFORTS TO PAY OFF THEIR DEBT, FEW

HAVE LOOKED FOR RESOURCES. Most adults ages 50+ who have credit card debt are working on paying off their debt, yet those who feel financially insecure expect it to take much longer.  For

example, those who feel financially insecure are more likely to expect to take over five years to pay off their credit card debt.  Regardless of whether they feel financially secure,

however, few have sought out information on how best to go about paying off their debt. RESOURCES FOR PAYING OFF CREDIT CARD DEBT AND BUILDING SAVINGS ARE AVAILABLE. Adults who carry credit

card debt, especially those who are carrying balances for a prolonged period, may benefit from information about strategies for paying off credit card debt as well as help determining where

to go for reliable guidance.  Because credit card debt can be a barrier to building savings, saving for the future may be more achievable once high-interest credit card debt is paid off. For

those struggling with credit card debt, the report recommends seeking information on debt reduction strategies, consulting credit counselors or financial advisors, and exploring public

benefit programs. Resources such as AARP’s credit card pay-off calculator, the Consumer Financial Protection Bureau’s educational materials, and the National Foundation for Credit Counseling

 may also be useful.  Additionally, programs that facilitate automatic savings from paychecks can help workers prepare for emergencies and retirement. METHODOLOGY These findings are based on

a survey of 4,846 adults ages 50-plus who carry over credit card debt from a previous month, whether on active cards or cancelled cards. Conducted by NORC at the University of Chicago on

behalf of AARP, the survey includes oversamples of Black and African American adults as well as Hispanic and Latino adults. The survey was fielded online and via phone from November 7 to

December 2, 2024. Data for the general sample were collected using NORC’s Foresight 50+®_  _panel, which is a probability-based panel designed to be representative of the U.S. household

population age 50 or older. To achieve the desired oversamples of Black adults and Hispanic adults, respondents from the Dynata nonprobability online opt-in panel were included. The survey

included a total of 1,643 African American/Black adults and 1,250 Hispanic adults. TrueNorth calibration weighting was used in the oversamples to combine the probability and nonprobability

samples and reduce bias in the nonprobability sample.  The full sample was also weighted by age, gender, education, race/ethnicity, and census region to reflect the U.S. population of adults

ages 50-plus who have credit card debt. For more information, contact S. Kathi Brown at [email protected] or Lori Trawinski [email protected]. Media inquiries should be directed to

External Relations at [email protected].