What’s the Most Common Debt for Retirees?
A recent survey of about 2,000 American retirees between the ages of 62 and 75 found many of them burdened with debt.
Some likely ran out of time to pay off their debts before retiring. Others may have entered the red or simply deepened their debt level after leaving work.
Money Talks News’ recent article entitled “This Is the Most Common Debt Among Retirees — by Far” provides the most common type of debt retirees report — along with other debts that are part of retirement for many people.
- Credit card debt. Retirees who said they had this type of debt in 2022 was 40%, compared to 42% in 2020. Credit card debt is almost always expensive, but it’s much worse if you don’t have a regular paycheck to help you pay bills.
- Mortgage. Retirees who said they had this type of debt in 2022 was 30%, with no report for 2020. A home loan is one of the few types of borrowing that can be classified as “good debt.” Many experts suggest paying off a mortgage before retirement. but others argue against such a strategy.
- Auto loans. Retirees who said they had this type of debt in 2022 was 23%, and in 2020, it was 30%. Unless you saved a bunch, an auto loan is hard to avoid, retired or not. As a result, about a quarter of retirees still are paying off this type of loan.
Retirees said they also are carrying these types of debt in 2022:
- Medical debt: 11%
- Home equity loan: 7%
- Student loan: 4%
- Business loan: 1%
Reference: Money Talks News (Jan. 9, 2023) “This Is the Most Common Debt Among Retirees — by Far”