High-interest debt threatens many retirements from one generation of Americans – and they aren’t the millennials.
According to a recent survey of baby boomers (aged 51 to 70) by TransUnion, a Chicago-based credit bureau, a significant minority of Americans recently retired or near retirement are making credit mistakes detrimental to their financial wellbeing after leaving the workforce.
Paradoxically, baby boomers trying to repair their credit may actually worsen it. One-third of the respondents, 34 percent, are actively reducing their reliance on credit cards – but TransUnion notes that this cohort may end up lowering their credit scores as they close credit card and other accounts.
According to TransUnion’s credit database, the average baby boomer holds almost $100,000 in debt.
Source: FA Magazine