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The end of a calendar year is always a smart time to reconsider your financial health. Unfortunately, the past few years have been a time of economic burden for many Americans. And the numbers support this reality: Credit card debt reached a cumulative record of $1.17 trillion in the third quarter of 2024. The average American is currently saddled with about $8,000 in credit card debt alone, without taking into account other types such as mortgages, student loans and car loans. Considering that the average credit card interest rate Just up to a record 23.37%, this type of debt can be crippling for most people.
While these numbers are extremely troubling and difficult to deal with, they can be even more burdensome for seniors and the elderly retirees depending on limited budgets to make ends meet. For these Americans, high credit card debt can mean the difference between living a comfortable and financially independent life – or not. And with the recent one Social Security Cost of Living Adjustment At the lowest levels since 2021, there may not be many obvious ways to dig out of this financial hole without help.
Fortunately, there are a number of valuable and effective ways to tackle this credit card debt, which many seniors may want to start exploring now, with an eye toward regaining their financial freedom in 2025. Below, we’ll break down three crucial ways to know .
Explore the credit card debt relief options available to you here now.
3 Ways Seniors Can Reduce Their Credit Card Debt by 2025
Here are three effective ways seniors can reduce their credit card debt by 2025:
Forgiveness of credit card debt
Forgiveness of credit card debt can result in you forgiving 30% to 50% of your current debt balance, significantly reducing your debt. But that will be necessary qualify for credit card debt forgiveness to benefit. That means you must have at least $7,500 in outstanding debt, evidence of financial difficulty, and likely multiple missed payments showing your continued inability to pay. Still, Clearing credit card debt takes time to be effective, so if you qualify for this assistance, it is wise to apply as early as possible.
Check online today to see if you qualify for credit card debt forgiveness.
Balance transfer cards
Balance transfer cards do exactly what their name implies: they transfer your existing credit card balance from one or more cards to a single one. While they may not seem like a smart move at first glance, the details are important. If you currently have cards that are around that average rate of 23% and can transfer them to a card with a 0% introductory rate, it makes sense to do so.
By taking this step, you can temporarily stop all the money you would have otherwise paid in interest and instead use it to reduce your principal balance. But these low or 0% rates don’t last forever and offers depend on your financial situation and the available lenders. So if you know you want to pursue this alternative, you should start exploring your options right now, before the new year begins.
Debt Consolidation Loans
Immediately debt consolidation loanThe same basic concept applies as for balance transfer cards. You combine your debts into a single loan, usually with a much lower interest rate. You then pay your payments on this loan instead of spreading them among multiple credit card companies. This can save you time and money.
That said, you must qualify for this new loan type, and if you’ve already damaged your credit due to large debts, the loan type and rate you qualify for may not be particularly beneficial. So weigh this option against the other two debt relief options to better determine which makes the most sense for your financial situation.
The bottom line
There are several ways seniors can tackle their credit card debt, both now and in 2025. The key, however, is to simply start. With high interest rates, increasing debt and the likelihood thereof credit card interest rates drop is small, it makes sense to take action now. This allows seniors to position themselves for more financial freedom, both in 2025 and in the years to come.
