3 Debts Hitting Boomers Hardest in 2026 — and How To Stop Them From Draining Savings

Gabrielle Olya

Tue, May 19, 2026 at 6:25 AM EDT 6 min read

The average American with personal debt now owes $21,700, according to a new Northwestern Mutual study. But how that debt is distributed varies between generations.

Among boomers with debt, credit card debt is the most common (29%), followed by auto loans (11%) and medical bills (5%). While each presents different risks, credit card balances tend to do the most long-term damage because of high interest rates — which is why experts say they deserve special attention.

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Here’s a closer look at why credit card debt is so common among this generation, how they can best tackle it, and how to balance paying off credit card debt and other types of debt.

Why Credit Card Debt Is So Common Among Boomers

Nearly 1 in 3 boomers have credit card debt — and there are several reasons for this, according to Dexter T. Wyckoff, growth and development director and financial advisor at Northwestern Mutual.

• High APRs and missed fine print: “Carrying balances exposes consumers to interest and penalties that make pay-down harder.”

• Convenience and budgeting blind spots: “Easy card use plus unclear budgets let small overspends accumulate into revolving balances.”

• Inflation and cost pressures: “Americans cite inflation as the top obstacle to financial security, and boomers are notably pessimistic about inflation rising. Rising prices can make it hard for people to manage debts, especially those on a fixed income.”

• Insufficient emergency buffers: “More than half (52%) of adults admit they prioritize building wealth over protecting assets, leaving gaps that turn one-off emergencies into credit card debt.”

• Alternative payment plans and complexity: “Widespread use of buy now, pay later and multiple payment plans complicate tracking and repayment.”

Considered together, these factors explain why many boomers still carry credit card balances.

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How Boomers Can Pay Down Credit Card Debt in 2026

According to the Boston Fed, only about 35% of Americans pay their credit card bills in full each month. However, there are ways to break the cycle and get out of credit card debt.

Here’s what Wyckoff recommends.

• Keep spending disciplined: “Revisit your budget and stop impulse buying.”

• Create a financial safety net: “Build a one-month emergency fund. The study finds that many Americans underemphasize protecting assets, so one surprise expense often becomes credit card debt.” Pay minimums until that safety net is established, then apply extra cash to debt.

• Negotiate rates or consider a balance transfer card: “The average card APR is high, so lowering rates or moving to a 0% promo can materially reduce interest costs — but promos are temporary and may have fees.”

• Choose a debt repayment method: Use the avalanche method (tackle the card with the highest APR first) or switch to a snowball (start with the lowest balance first) if you need quick wins to stay motivated. “Avalanche minimizes total interest paid; snowball builds momentum.”

• Avoid piling on new payment plans: Avoid things like buy now, pay later and multiple promos while paying down balances.

• Make frequent payments and automate where possible: “Pay on time to protect your credit score. Payment history drives 35% of your credit score; frequent payments reduce interest accrual and make course corrections easier.”

• Consider professional help: “According to the study, people with financial advisors feel far more financially secure. Advisors can help prioritize between debt repayment, saving and other goals.”