Higher Balances
In the 1990s, the amount of credit card debt seniors carry rose dramatically.
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.
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.
