SENIORS SEE DEBT GROW – “RETIRING IN THE RED”
February 18, 2004
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Older Americans who borrow on credit cards are taking on more debt, suggesting that growing numbers of seniors are struggling to pay monthly bills, according to a new study by a New York public-policy group, the Wall Street Journal reported.
Demos, a nonpartisan group that studies election overhauls and economic security, says its study also suggests that the economic gaps among senior citizens are widening, with lower-income seniors taking on more debt, while higher-income seniors are reducing their debt burden.
The study, “Retiring in the Red,” expected to be released today, analyzes data collected from roughly 4,000 households in 1992 and 2001 as part of the Federal Reserve’s triannual Survey of Consumer Finances. Demos found that seniors remain less likely to borrow than other Americans. But those who are borrowing are borrowing a lot more. Among people over 65 with monthly credit-card balances, the average self-reported balance rose 89 percent to $4,041, in 2001. For all indebted credit-card holders, the average monthly balance increased 38 percent to $4,126, reported the online newspaper. The biggest increases came among those aged 65 to 69. Their average monthly balances more than tripled to $5,844 in 2001, from $1,842 in 1992, according to the study. Read the full article at www.wsj.com (subscription required).
