Yahoo Finance 5 Cities Where Boomers Have the Most Credit Card Debt
With the exception of investment debt, most forms of debt act as a drag on household finances. This is particularly true in the case of credit card debt. With a current average interest rate of 21.51%, according to the Federal Reserve Bank of St. Louis, even small credit card balances can balloon rapidly. Even an 18% interest rate, for example, can double your debt in as little as four years, so it’s important to attack credit card balances before they grow too large.
Unfortunately, carrying balances on a credit card is something of a national obsession in America. Credit card debt can be a particular problem for baby boomers, who are either already retired or knocking on retirement’s door. Once you transition to a fixed income in retirement, as many seniors do, it can be even harder to find room in your budget to pay down outstanding debt.
Boomers who live in high-cost areas — or those who feel pressured to keep up appearances and spend like their wealthier neighbors — may find it even harder to get out of debt.
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To find out what cities in America have the highest levels of credit card debt among boomers, LendingTree anonymously analyzed data from over 428,000 users in the 100 largest U.S. metros. According to the data, here are the five cities where boomers have the most credit card debt, along with a brief analysis of why this may be the case.
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Dallas
Median balance: $6,292
Percentage with debt: 92.9%
Dallas has the ignominious position of having the highest median credit card balance for boomers in the nation, approaching $6,300. While the cost of living isn’t particularly high, running about 3% above the national average, per Payscale, median income is slightly below the national average, coming in at $70,871, according to the Federal Reserve Bank of St. Louis. Dallas County had the second-highest concentration of medical debt among large counties in 2022, something that may also be contributing to higher credit card debt levels.
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Fresno, California
Median balance: $6,215
Percentage with debt: 90.1%
Fresno is the capital of California’s Central Valley, which is largely an agricultural area. However, Fresno is a bustling metropolis that is one of the fastest-growing regions in the country. As a result, Fresno, which sits in a relatively low-cost area of California, actually has a cost of living about 7% above the national average, per PayScale. This could be an adjustment for boomers in the area who move into the city for retirement, and it may contribute to higher debt levels in the region.
Austin, Texas
Median balance: $6,202
Percentage with debt: 94.9%
Austin is known as the “Live Music Capital of the World” and can be a great place to live. But the cost of living can be high in the state capital, especially for boomers. Costs in the city run more than 29% above the national average, and housing can be particularly expensive, with a median price of over $577,000, according to Bramlett Residential Real Estate. It’s estimated that married couples need over $110,000 to live comfortably in Austin, which could stretch the budgets of some boomers and push them into debt.
Bridgeport, Connecticut
Median balance: $6,071
Percentage with debt: 97.2%
Connecticut isn’t known as being a particularly affordable state, and Bridgeport is one of the cities that perpetuate this stereotype. With a cost of living about 38% above the national average, per BestPlaces, boomers who don’t have their finances in order could end up living beyond their means. That’s perhaps one of the reasons so many of them have credit card debt — the highest percentage of any of the metros surveyed. Housing costs, somewhat surprisingly, are about 12.5% below the national average, but for boomers who own their homes free and clear, this might actually be a negative, as it may mean they have less home equity than they’d have in other cities.
Miami
Median balance: $6,012
Percentage with debt: 95.2%
Although Florida in general has a relatively low cost of living, the enormous state has many different regions. Perhaps none is as glitzy and glamorous as Miami, where the nightlife and beaches draw residents from around the world. All of this excitement, of course, pushes up the cost of living in Miami. Overall, expenses run about 21% above the national average, per Payscale, with housing and groceries among the biggest culprits. The general “more is better” lifestyle in areas like South Beach can also contribute to overspending among boomers, perhaps one of the reasons more than 95% carry debt.
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