Seniors Carrying Significant Debt Burden
A recent data release from LendingTree paints a concerning picture for Arizona’s senior population. The study reveals that Arizona ranks 12th in the nation for credit card debt among seniors aged 65 and older, with an average balance of $7,768. This highlights a significant financial burden faced by many Arizonans as they enter their golden years.
The data goes further, showing that Arizona seniors dedicate a substantial portion of their Social Security income to managing this debt.
On average, 12.8% of their Social Security benefits go towards minimum credit card payments, placing Arizona 16th in the nation for this category. This translates to an average monthly minimum payment of $239.53, which again falls within the bottom half of states nationwide.
For context, the national average credit card balance for seniors sits at $7,484, with an average credit limit of $57,166. Arizona falls slightly above the national average in terms of debt but significantly trails in terms of minimum monthly payments compared to other states.
While Arizona doesn’t hold the top spot for senior credit card debt, the LendingTree data reveals a concerning trend. With a significant portion of their income dedicated to minimum payments, Arizona seniors may face challenges in covering essential expenses like housing, food, and healthcare.
This situation underscores the importance of financial planning and responsible credit card use, particularly as individuals approach retirement.
The study by LendingTree analyzed over 307,000 credit reports from users with active credit cards between January 1st and March 31st, 2024. Further analysis of this data can provide even deeper insights into the financial challenges faced by Arizona seniors and potentially lead to the development of targeted solutions to help this vulnerable population.
