Credit card debt can be daunting, especially if you’re near or in retirement and living on a tighter budget. Among generational cohorts, Generation X carries the highest average credit card balance at $7,236. That’s about $1,000 more than baby boomers, who came in second with an average balance of $6,230, according to Experian. The lowest average credit card debt by age was Generation Z with $2,312.
“Living on fixed incomes and facing rising inflation on core items such as food, gas, housing, it does hit the elderly hard. I believe we’ll see over the next few years rising credit card balances among older adults—we’ll see more of that in the future,” said Erin Wood, senior vice president, financial planning and advanced solutions at Carson Wealth in Omaha, Neb. A study in the journal Aging and Mental Health found that carrying a credit card balance is the strongest predictor of struggling to pay monthly bills and facing financial strain—stronger than other non-housing consumer debt and mortgage debt. “Debt can delay or severely handcuff a retiree or near-retiree,” said DeHaven Becker, partner, managing director and wealth manager with Harmony Private Wealth at Steward Partners in Fort Collins, …