52% of older Americans carry credit card debt. Here’s how it holds them back

Credit card debt is the worst, and it can be especially burdensome for older people.

Sadly, it’s a common burden. Fifty-two percent of U.S. adults aged 50 to 64 carry a credit card balance month to month, according to a recent AARP survey. Dealing with card debt at this stage of life can have major negative impacts on financial health, and getting rid of it comes with a set of unique challenges.

I spoke with David Flores Wilson, a certified financial planner and managing partner at Sincerus Advisory, about older Americans who are dealing with credit card debt — and what they can do about it.

How older Americans end up with credit card debt

Everyday expenses are the main driver of credit card debt for older cardholders, as well as home and vehicle costs and health care. Here’s a breakdown from the AAPR of the percentage of people who cited the following reasons:

• Everyday expenses — 31 percent
• Vehicle costs — 23 percent
• Housing costs — 23 percent
• Major household appliance purchase — 20 percent
• Health care — 20 percent

Wilson points out that inflation might be to blame for such expenses contributing to debt.

The costs of food and health care and travel [have been up] dramatically over the last 15 years.

— David Flores Wilson
Certified financial planner and managing partner at Sincerus Advisory

The rising cost of credit card debt also doesn’t help. The average credit card APR was around 12 percent at the beginning of 2010, according to Bankrate data. But in 2025, the average rate stands at slightly above 20 percent. That’s an 8 percent increase in 15 years. Higher APR charges make it more difficult to pay down debt. The same balance now takes longer to pay off unless you consistently make bigger payments.

Another factor might be more psychological. Wilson explains that people who rely on their investments for income might adjust their income based on how their portfolio performs.

When people see their portfolio up, they tend to adjust their spending up a little bit. And when the markets pull back, they don’t adjust it down.

— David Flores Wilson
Certified financial planner and managing partner at Sincerus Advisory

This is what experts sometimes refer to as “lifestyle inflation.” Credit card debt can be a warning sign of lifestyle creep — a common financial trap that’s not always easy to recognize and get out of.

What are the impacts of carrying card debt later in life?

When you consistently carry a credit card balance in your 50s or 60s, it turns into a crutch. It might help you deal with everyday expenses, but it also limits your financial flexibility and ability to achieve important goals. Let’s take a closer look at the effects of credit card debt at this stage of life.

Reduced ability to build savings

Savings are one of the main priorities when preparing for retirement. But when you have credit card debt, the money that you could have contributed to your retirement fund goes toward your credit card balance. In fact, just one in three adults who carry credit card debt (33 percent) are saving money monthly, according to AARP.

Delayed retirement

When you don’t have enough savings to retire, you might have to delay this milestone. This can be especially problematic if you’re experiencing health issues or have a disability.

Reduced wealth building

Another essential part of the financial lifecycle is building long-term wealth through investments, whether it’s contributing to a brokerage account or purchasing property. But when credit card payments are a priority, this kind of goal tends to take a backseat.

Limited financial flexibility

When you have card debt to worry about, you have less money for anything else. Whether you want to go on vacation, upgrade your home or help out your loved ones financially, these things might have to wait. Otherwise, you risk increasing your credit card balances.

Mental health issues

Financial problems impact so many facets of our lives. It’s no wonder that 43 percent of Americans say money is negatively impacting their mental health, at least occasionally, according to Bankrate’s 2025 Money and Mental Health Survey. Further, 43 percent of people who say money negatively impacts their mental health, at least occasionally, cite being in debt, such as credit card debt, medical debt or student loan debt.

Persistent credit card debt can lead to stress, anxiety and feelings of shame and helplessness. In some cases, it can even trigger depression.

How to deal with credit card debt later in life

It can be a huge undertaking to get rid of credit card debt. But with enough discipline and strategy, it’s absolutely possible. Here are a few steps you can take.

Review your budget

Your budget should be flexible, so make sure you adjust it if your income fluctuates. You also want to keep it realistic: don’t spend too much — or too little.

We see people sometimes doing sort of the financial equivalent of a crash diet. They just spend a lot less in a short amount of time, and then it [is not sustainable] in the long term.

— David Flores Wilson
Certified financial planner and managing partner at Sincerus Advisory

Adjust your habits

You can find ways to cut spending by making small changes to your habits and lifestyle. Wilson suggests an example: if you usually meet up with friends for dinner, you can meet up for coffee instead.

It might also be helpful to make your money less accessible. This way, every time you need it, you have to really consider how much and what for.

“Maybe you don’t create an automatic ACH link between your brokerage account and your bank account,” Wilson says. “You just sort of make it a little more difficult to take money out.”

Create a debt repayment strategy

From debt consolidation loans to balance transfer cards, there are plenty of tools that can help you pay off your credit card debt. Wilson also recommends looking into the avalanche method (paying off your highest-interest credit cards first) and the snowball method (prioritizing the cards with the lowest balances).

Whatever strategy seems most appealing, you want to choose one you can stick with. Debt repayment is a marathon, not a sprint. Pick the method that is most likely to get you to the finish line and a $0 card balance.

Start building your team

It can be a good idea to seek professional help if you can. At this stage, your financial matters might be more complex, so working with specialists could be beneficial.

“You can have a CPA that can help you save money on tax strategies or… maybe a financial planner as well that can look at the budget and make suggestions,” Wilson says.

The bottom line

Dealing with credit card debt as you’re nearing retirement can keep you from building the savings you need and investing in your future. Not to mention, it can decrease the quality of life.

If you’re one of many older Americans carrying a credit card balance, know that you’re not alone — and this is an issue you can resolve. As long as you have a realistic budget and a repayment plan you can stick with, you’re on the right track.