Blogging for Change

Helping Older Americans Struggling With Debt

by Jesse Campbell on
9/17/2025
in Repaying Debt
Senior couple sitting with their dog.

Debt isn’t just a challenge for young adults starting their careers or families in their prime earning years. More older Americans than ever are carrying debt into retirement, and many are finding it harder to keep up. Rising housing costs, growing medical bills, and reliance on credit cards to cover everyday expenses are leaving many seniors financially vulnerable.

A 2025 AARP study found that that nearly half of Americans ages 50-plus carry over credit card debt from month to month. While debt can be difficult at any age, older adults face unique challenges. Retirement often means living on a fixed income, and medical costs or housing payments can quickly eat away at a tight budget. What may feel like a tolerable amount of debt in your working years can become unmanageable once your income shrinks.

The good news: help is available, no matter your age.

Why debt is especially hard for seniors

Older adults typically have fewer options to increase their income; many are retired and drawing from Social Security, pensions, or retirement accounts. Those still working may not be able to add extra hours or side jobs to make ends meet. At the same time, expenses like healthcare often rise in later years. All of these factors combined means that even small amounts of debt can become overwhelming.

How can senior citizens get out of debt

When you’re overwhelmed by debt, it can feel like there are no good options. This is especially true for seniors, who may be on fixed incomes or have limited resources to pay off outstanding debts. It’s easy to feel like there’s no way out but there are debt relief programs for seniors that can help alleviate some of that financial burden.

Debt relief for seniors

At MMI, we offer nonprofit services to help you get out of debt and regain your financial freedom.

Credit counseling is a free service that helps you take stock of your full financial picture (income, expenses, debts, and goals) and then identify realistic options for moving forward. At MMI, credit counselors are trained to work with seniors in debt and understand the unique challenges of living on a fixed income or balancing medical expenses.

In some cases, credit counseling may reveal that you’re “judgment proof.” This means that if you have little to no income beyond protected sources like Social Security, and limited assets, creditors may not be able to collect from you. That can change the options you pursue.

If you need help getting out of debt before or during retirement, a debt management plan (DMP) can consolidate unsecured debts (such as credit cards or medical bills) into one monthly payment, often at a lower interest rate (below 7% on average). The reduced interest rate and consolidated payment can help get out of debt in as little as 24 months.

If your debts are significantly behind or already in collections, MMI also offers a debt resolution plan (DRP), which helps negotiate a partial repayment of your debts at a reduced balance. This is an ideal solution if you really can't afford to repay your debts in full. Both options are designed to provide relief without putting your home or retirement savings at risk.

First steps to take if you’re feeling overwhelmed by debt

If you’re an older adult struggling with debt, here are some practical steps to take right away:

  • Make a full list of your debts and expenses. Write down what you owe, your minimum payments, and your total monthly budget.
  • Prioritize essentials. Housing, utilities, food, and healthcare should come first. If you can’t pay everything, focus on what keeps you safe and healthy.
  • Know your rights. Don’t let debt collectors pressure you into paying debts you can’t afford or that may not be valid. The Fair Debt Collection Practices Act (FDCPA) protects you from harassment and unfair practices.
  • Talk to a credit counselor. Even if you’re unsure what path to take, a free session with MMI can help clarify your options and take some of the stress off your shoulders.
  • Watch out for scams and financial abuse. If someone promises to make your debt disappear overnight, demands upfront fees, or pressures you to share sensitive information, take caution. Learn more about how to spot a debt relief scam.

Struggling with debt in retirement? You’re not alone

Debt in retirement can feel isolating, but millions of older adults are facing the same challenges. The most important step is to not ignore the problem. Whether you need help protecting your income, lowering interest rates, or negotiating debt in collections, MMI has options tailored for your situation.

If you or a loved one are struggling with debt, reach out today for free, confidential credit counseling services. No matter your age, there’s a way forward.

Tagged in Seniors, Debt strategies

Jesse Campbell photo.

Jesse Campbell is the Content Manager at MMI, with over ten years of experience creating valuable educational materials that help families through everyday and extraordinary financial challenges.

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