Growing older used to mean approaching a long-anticipated milestone: retirement, freedom, and peace of mind. But for many Americans today, that vision is slipping further out of reach.
Instead of financial freedom, they’re facing financial fear. In fact, half of Americans aged 55 to 78 say they’re overwhelmed by debt and worry they’ll never be able to pay it off.
If that sounds familiar, you’re far from alone—and it’s not your fault. A perfect storm of rising costs, unexpected life events, and economic uncertainty has left millions of older Americans shouldering burdens they never expected to carry at this stage of life.
You’re Not the Only One Facing This
If you’re carrying debt into your older years, you might feel like you’re the only one still struggling while others have moved on to retirement. But the truth is you’re part of a much larger group of Americans facing the same uphill battle.
A new survey commissioned by National Debt Relief and conducted by Talker Research offers a clearer picture. The research gathered responses from 2,000 Americans between the ages of 55 and 78, including both Gen Xers and Baby Boomers, to better understand their experiences with debt and financial stress.
The findings are striking: 72% of respondents in this age group have accumulated debt. And for many, it’s a burden that weighs heavily on their lives. More than half say debt has “held them back,” limiting their freedom, delaying retirement, or forcing tough financial choices.
Perhaps most telling, 62% of those surveyed said they never envisioned being in debt at this stage in life. That’s because the traditional idea of a debt-free retirement simply doesn’t match today’s financial reality.
What That Debt Looks Like
From credit cards to mortgages, older Americans are managing multiple types of debt that impact their monthly budgets and long-term plans.
Credit Card Debt
Nearly half of older Americans (45%) have credit card debt. Among those with credit card balances, the average amount owed is close to $9,000, with an average monthly payment of $418.
Mortgage Debt
Even as retirement age approaches, 30% of respondents still have mortgage debt. On average, they owe about $72,000, with monthly payments of $797. For many, this ongoing housing expense can eat up a significant portion of fixed or limited income.
Medical Debt
Health issues can arise unexpectedly—and often come with a high price tag. 17% of older Americans surveyed are still paying off medical debt, with an average balance of $9,144 and monthly payments around $222.
Auto Loan Debt
Transportation is essential, but it’s not cheap. 22% of respondents have auto loan debt, with an average balance of about $17,000 and monthly payments averaging $446.
Why It’s So Hard to Get Ahead
For many older Americans, debt can feel impossible to escape. The survey revealed several common barriers that keep people stuck in a cycle of debt:
- 46% said they don’t earn enough income to successfully pay down their debts.
- 30% pointed to high interest rates as the biggest obstacle.
- 26% said they can only afford to make the minimum payments
And these challenges don’t exist in a vacuum. They’re happening in a broader financial climate that’s straining even the most carefully planned budgets:
- 72% of respondents said inflation has had the biggest impact on their ability to save.
- 69% cited the rising cost of living as their top financial concern for the future.
- 45% said the economy itself is their biggest worry.
Even those who are doing everything “right” can feel like they’re just treading water.
The Impact on Retirement & Savings
For many Americans aged 55 and up, debt is reshaping their long-term plans, especially when it comes to retirement.
According to the survey, 68% of those in debt said it has either “very much” or “somewhat” impacted their ability to retire. And for those who haven’t retired yet, the future feels uncertain: 59% said they expect to work longer than they originally planned just to support themselves and their families.
Savings aren’t offering much of a safety net either. Among respondents who reported having debt:
- The average savings amount was $29,187.
- Nearly half (49%) had less than $20,000 saved.
- Over one in five (22%) had no savings at all.
These numbers highlight a deeper concern: 61% said they don’t believe they have enough savings to live comfortably for the rest of their lives.
With rising expenses and limited income, even small financial setbacks can feel destabilizing. And with 82% of respondents expressing concern about the future of Social Security, and 76% saying they don’t believe Social Security will be enough to support them, the sense of financial insecurity becomes even more pronounced.
You’re Not Powerless—What You Can Do Next
Debt in your golden years can feel overwhelming, but it doesn’t have to be the end of the story. There are real steps you can take to regain control, reduce your financial stress, and build a more stable future.
1. Assess Your Debt Situation Honestly
Start by creating a full list of your debts. For each one, write down:
- The name of the creditor or lender
- The total balance you owe
- Your current monthly payment
- The interest rate
- Due dates
- Any fees or penalties you’re being charged
Include all types of debt, whether it’s credit cards, personal loans, medical bills, a mortgage, or auto loans. If you’ve fallen behind on any payments, note how far behind you are and whether the account is in collections.
2. Pick a Debt Payoff Strategy
If you’re managing multiple debts, deciding which one to pay off first can feel overwhelming. Two popular and proven strategies can help you pay down your balances more efficiently.
The Snowball Method
This method focuses on paying off your smallest debts first, regardless of interest rate. Here’s how it works:
- Make the minimum payment on all your debts.
- Put any extra money toward your smallest debt until it’s fully paid off.
- Then move on to the next smallest debt, applying the same strategy.
Why it works: The snowball method is great for motivation. Knocking out that first balance can give you a quick win and build momentum.
The Avalanche Method
The avalanche method targets debts with the highest interest rates first:
- Make the minimum payment on all your debts.
- Apply any extra funds to the debt with the highest interest rate.
- Once that’s paid off, move to the next highest interest rate, and so on.
Why it works: This method saves you the most money over time because you’re reducing the amount of interest you’ll pay.
3. Explore Debt Relief Options
If your debt feels unmanageable, it might be time to consider a more structured debt relief strategy. Depending on your financial situation, there are several paths that could help reduce your burden and give you a clearer way forward.
Debt Consolidation
This involves combining multiple debts into a single loan, ideally with a lower interest rate. You’ll make one monthly payment instead of juggling several. It can simplify your finances and potentially lower your total interest costs. But approval often depends on your credit score and income.
Debt Settlement
With debt settlement, a company works on your behalf to negotiate with creditors to reduce the total amount you owe. You make monthly deposits into a dedicated account, and once there’s enough saved, the company uses those funds to settle your debts for less than the full amount.
Credit Counseling
Nonprofit credit counseling agencies offer free or low-cost guidance to help you better manage your money. A counselor may recommend a debt management plan (DMP), where you make one monthly payment to the agency, and they pay your creditors.
Bankruptcy
Bankruptcy is a legal option that can discharge certain types of debt, giving you a fresh start. While it’s not a decision to take lightly—and it has long-term credit implications—it may be the most realistic option for people facing extreme financial hardship.
Final Thoughts
Feeling overwhelmed by debt as an older adult is more common than you might think, and it’s nothing to be ashamed of. Whether you’re still working or already retired, it’s never too late to take back control of your finances. With the right support and a clear plan, you can move toward a more stable, confident future.
If you’re struggling with overwhelming debt and don’t know where to start, National Debt Relief may be able to help. Speak with a certified debt specialist today for a free, no-obligation consultation. It’s time to take the first step toward a life no longer defined by debt!
