Retiring in the Red: The Growth of Debt Among Older Americans

Summary

Part of the Borrowing to Make Ends Meet series, this brief documents the rise in credit card and mortgage debt between 1992 and 2001, and examines the factors contributing to older Americans’ increased reliance on credit cards. Looking at debt increases by income, race and age, the authors found that some populations were hit harder than others.

Table of Contents

• Key Findings
• Introduction
• Credit Card Debt Among Older Americans, 1992–2001
• Industry Practices and Economic Insecurity
• Economic Insecurity Among America’s Seniors
• Rising Costs
• Transitioners: A Way to Predict the Future
• Policy Recommendations
• Conclusion

Key Takeaway

Seniors' Economic Insecurity and credit card debt

Unexpected or unaffordable costs present a difficult choice for older Americans on fixed incomes: borrow, or go without. For many, credit cards have become a safety net while incurring sky-high costs and the prospect of endless debt payoff.