Monday, May 8, 2017

Older Debt

The Federal Reserve Bank of New York released numbers recently showing that the share of all household debt held by people aged 60 and older has almost doubled, from 12.6 percent in 2003, to 22.5 percent in 2016. The total debt is now nearly $3 trillion.

Mortgages, auto loans, credit cards and even student loan balances have all grown significantly for older Americans -- and only older Americans. Borrowers under 60 reduced their mortgages and credit card balances relative to the peak during the 2008 financial crisis.

Seniors are holding $67 billion in student loans, and the number of seniors holding such loans has quadrupled since 2005. That makes older folks the fastest-growing segment of the student loan borrower population, according to a recent report by the Consumer Financial Protection Bureau.

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