Boomers and Gen X face debt crisis using credit cards for essentials

Hey, are you feeling the pinch? You’re not alone. A new study shows that many folks between 50 and 64 are carrying credit card debt. A lot of it.

The reason? Many are using those cards to pay for everyday needs. Think groceries, rent, and keeping the lights on.

The Numbers Don’t Lie

A recent AARP survey dug into this issue. The findings are a bit alarming.

• Over half – that’s 52% – of adults aged 50-64 have credit card debt.
• Almost half (47%) are using credit cards for essentials. Food. Housing. Utilities. Healthcare. You name it.
• And get this: 17% are doing it *every single month. *

Ouch. That’s a tough spot to be in.

Why Should We Care?

Indira Venkat, a senior VP at AARP, put it bluntly: “A concerning number of older adults carry credit card debt today just to make ends meet. ” Credit card debt can mess up your retirement plans.

Imagine working hard your whole life, only to be weighed down by debt when you should be relaxing. Not good.

Digging Deeper into the Debt

The survey asked folks who carry a credit card balance about their expenses. Here’s what they found:

• Over a third (37%) have *more* credit card debt now than a year ago.
• A shocking 28% owe $10,000 or more.

That’s a lot of money. Especially if you’re on a fixed income.

Fixed Incomes and Tough Choices

The survey also revealed that those most likely to carry a balance earn less than $40,000 a year.

Venkat explained that for many retirees on a fixed income, it’s hard to pay down debt without making sacrifices. Big sacrifices.

Healthcare Costs: A Big Culprit

Healthcare expenses are a major factor. Half of those surveyed said medical bills contributed to their credit card debt.

Think about it. A sudden illness, a trip to the emergency room. .. These things can really set you back.

The Trend is Not Our Friend

Sadly, this isn’t a one-time blip. Another poll showed that around 68% of retirees had credit card debt in 2024. That’s up *substantially* from 40% in 2022.

What’s the takeaway? Things aren’t getting better. They’re getting worse.

What can you do? That’s the million-dollar question. It’s time to start thinking about solutions. Before it’s too late.