When it comes to dealing with credit card debt, it seems that we should be taking our cues from millenials. According to ValuePenguin, those of us in the 45-54 age demographic are the ones with the highest amount of credit card debt. On average, this group holds the highest amount of debt at at average of nearly $9000. In contrast, those under the age of 35 are carrying an average debt of less than $6000.
There is an easy explanation for all this: higher income. Generally speaking, those of us in this age range make more and believe that we can easily pay off this debt we incur. Unfortunately, while we may have the means to pay, we simply don’t discipline ourselves to do so. As a result, we continue to spend extra money servicing revolving debt. This actually robs us of savings that could definitely be of use to us in our later years.
The advice for this hasn’t changed much. We need to get back to the idea that credit cards aren’t meant as supplemental income. Instead, we must embrace the notion that they are indeed for those rarer occasions, as needs arise, instead of being used for our everyday living. Furthermore, if possible, these balances should be cleared quickly, to avoid the cycle of debt.
As someone who would like to retire someday myself, this report has the wheels turning in my head about my financial plans. Those credit card payments sure could be better put to use on something that could actually add more on the asset side of the balance sheet.
So, if you’re in this same boat, consider taking on the challenge to clean up credit card debt. The age of retirement is really not that far away. When it comes, it would certainly be nice to take advantage of it without a cloud of debt hanging over one’s head.