Retired and in Credit Card Debt? 2 Ways to Tackle the Issue.
Source The Motley Fool
Key Points
Nearly 93% of retirement-age Americans carry credit card debt.
Tapping into your retirement account is likely to compound your problems.
Tackling credit card debt may begin with speaking to your credit card companies.
- The $23,760 Social Security bonus most retirees completely overlook ›
The goal for many years was to enter retirement with no debt, and if you did carry debt, to ensure it fit well within your fixed income from Social Security, a pension, and/or required minimum distributions (RMDs). For most, that well-meaning goal has gone the way of the Pet Rock. Given today's cost of living, retirees are turning to credit cards to help them make ends meet.
According to a recent study by LendingTree, credit cards are the most common type of non-mortgage debt among adults ages 66 to 71. The study revealed that 92.6% of adults aged 65+ carry a credit card balance.
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Key strategies for getting credit card debt under control
By the time you claim Medicare, you've lived long enough to know that, for nearly every problem, there's a solution. The situation you're currently faced with doesn't have to continue forever.
1. Adopt a payoff strategy
Consider adopting either the "snowball method" or the "avalanche method" to pay off your credit card debt. Here's a rundown of how they work:
Snowball Method
- Make a list of your credit card debt, from the smallest balance to the largest.
- Decide how much extra you can spare a month, even if it's only a little. The point is to chip away at one debt at a time.
- First, focus on the smallest debt while continuing to pay the minimum payment on each of the other cards.
- Apply the extra money you found to the minimum payment on the card with the smallest debt.
- Once that card is paid off, roll the money you were paying toward it over to the credit card with the next-lowest balance.
- As you repeat the process, the amount you're paying toward debt grows larger, like a snowball rolling down a hill.
Avalanche Method
Make a list of your credit card debt, from the highest interest rate to the lowest.
- Decide how much extra you can spare.
- First, focus on the credit card with the highest interest rate and continue making the minimum payment on each of the other cards.
- Apply the extra money to the minimum payment on the card with the highest interest rate.
- Once that card is paid off, roll the money you were paying toward it over to the credit card with the next-highest interest rate.
- Repeat the process until all debts are paid off.
2. Negotiate with credit card companies
Whether you're unable to make payments or making them at the expense of paying other bills, it may be a good idea to contact the credit card companies. If you're not comfortable making the calls yourself, some credit counseling agencies will do it on your behalf, although most charge a fee for the service.
If you decide to call on your own, here's how to approach it:
- Prepare your information: Gather your account details, including account number and balance. Also, review your budget to determine how much you can realistically afford to pay each month toward the debt.
- Be polite: The person on the other end of the line is human and undoubtedly understands what it's like to try to keep up with bills. Be respectful to them, even if they seem unreceptive at first.
- Explain your situation: Briefly explain why you're seeking to lower your bill. For example, if you've lost a part-time job, are dealing with expensive medical debt, or going through a divorce, personalize your situation by explaining what's going on.
- Make a request: For example, you can ask the company to lower your interest rate, waive late fees, or set up a payment plan you can afford.
- Be open to counteroffers: If the representative says they can't honor your request, ask if they have any suggestions. Let them know that you want to keep up your end of the bargain but need them to meet you halfway.
- After an agreement is made: Don't make any payment until you've received a copy of the agreement in writing. Before hanging up, make sure you know the person's name and phone extension.
- If you don't receive a copy of the agreement: Follow up with the agent you worked with.
Preserve your retirement funds
When you're in debt, it may be tempting to tap your 401(k) or IRA for the funds to pay it off. This path has several serious issues:
- You may be hit with a larger tax bill than you anticipated for the year.
- Making an unexpected withdrawal could push you into a higher tax bracket.
- Taking money from your portfolio for any purpose other than required minimum distributions (RMD) or paying everyday expenses means losing crucial compound growth and potentially leaving yourself short later in retirement.
Credit card debt has become a way of life in the U.S., but that doesn't mean you have to remain mired in it.
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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Bitcoin Slides 5% as Sellers Lean In — Can BTC Reclaim $88,000?Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average.
The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000.
Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.”
Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal.
Bitcoin dips hard, finds a bid near $85,000（h3）
BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500.
The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet.
Structurally, BTC is still on the back foot:
It’s trading below $88,000, and
It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward.
Resistance is layered, and $89,000 is the problem area（h3）
If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession.
First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim.
A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle.
If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased.
If BTC fails to reclaim resistance, the downside path is clear（h3）
The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower.
Support levels line up like this:
Immediate support: $85,500
First major support: $85,000
Next support: $83,500
Then $82,500 in the near term
Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking.
Indicators: momentum still leans bearish（h3）
The intraday indicators aren’t offering much comfort yet:
Hourly MACD is losing pace in the bearish zone.
Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes.
So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.
Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average.
The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000.
Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.”
Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal.
Bitcoin dips hard, finds a bid near $85,000（h3）
BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500.
The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet.
Structurally, BTC is still on the back foot:
It’s trading below $88,000, and
It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward.
Resistance is layered, and $89,000 is the problem area（h3）
If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession.
First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim.
A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle.
If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased.
If BTC fails to reclaim resistance, the downside path is clear（h3）
The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower.
Support levels line up like this:
Immediate support: $85,500
First major support: $85,000
Next support: $83,500
Then $82,500 in the near term
Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking.
Indicators: momentum still leans bearish（h3）
The intraday indicators aren’t offering much comfort yet:
Hourly MACD is losing pace in the bearish zone.
Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes.
So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.
The AUD/USD pair attracts some sellers for the fourth straight day on Tuesday and trades around the 0.6630 region, down just over 0.10%, during the Asian session.
Analysts predict Bitcoin may face further declines towards the $70,000 mark if the Bank of Japan raises interest rates as expected.
