The majority of Americans above the age of fifty carry credit card debt from month to month, impacting their ability to save for retirement and otherwise causing less financial security.
AARP Research said in a new survey analysis that “credit card debt is the most common type of debt” among adults above fifty years old. The survey found that half of those with credit card debt “feel financially secure” despite their debt while the other half of respondents do not.
“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,” the results from the survey said. “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.”
Some nine in ten said that “unexpected expenses have contributed to their credit card debt,” while costs for vehicles, homes, and healthcare are also “common reasons for credit card debt.”
The respondents who reported feeling financially insecure while having credit card debt were also “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.”
The report from AARP Research comes as some lawmakers voice concern about increasing average credit card debt levels, which accompany a broader increase in household debt.
Missouri Republican Senator Josh Hawley and Vermont Independent Senator Bernie Sanders have jointly unveiled a bill meant to cap credit card interest rates at 10% for the next five years.
“Working Americans are drowning in record credit card debt while the biggest credit card issuers get richer and richer by hiking their interest rates to the moon,” Hawley commented in a recent statement about the legislation. “Capping credit card interest rates at 10%, just like President Trump campaigned on, is a simple way to provide meaningful relief to working people.”
