Credit card debt has a way of creeping up. Some seniors may rack up card debt even as they scale back their lifestyle. Many retirees leave their empty-nest homes and move into smaller living spaces. They decorate the new place and figure they'll pay off their hefty charge bills when the old house sells. The old house sells for less than expected and they're stuck with steep credit card bills.
Some seniors also go to great lengths to help their adult children.
They'll pay off a daughter's college loans or pay for a son's first home. They'll do all this even if it means reaching for a credit card to help make their own ends meet. The last thing seniors faced with a big credit card balance should do is pull money from a tax-deferred retirement account. Some seniors may be able to pay off card debt in one fell swoop by cashing in a stock or bond. Others will need to set up a strict, monthly repayment schedule that goes well beyond the minimum monthly payment.