The number of Americans age 60 and over in debt is alarming. A recent report by the AARP’s Public Policy Institute and the research organization Demos revealed that Americans over the age of 50 carried substantially more debt on credit cards — an average balance of $8,278 — than those under 50, whose average balance was $6,258.
More and more Americans are spending their golden years racking up debt—a trend that if left unchecked could derail entitlement reform and alter the traditional pattern of wealth being transferred from older to younger generations.
For the past several decades, millions of senior citizens have been able to enjoy relatively safe retirements, in part due to a lifetime of savings, private pensions, Social Security, Medicare, and home ownership.
FREDERICKSBURG, Va. -- There's nothing Deidre Duffy would rather do than host a backyard barbecue for a few friends.
"I don't want anything fancy," Duffy, 53, said in an interview next to her black Weber grill. "Give me some charcoal and I'm going to shoot those flames about six feet high, and when they come down -- it's my favorite thing."
A recent AARP Public Policy Institute report found that average credit card balances for households over age 75 jumped 31 percent during the recession. A separate AARP report found that boomers - households over age 50 - now have higher overall credit card debt than younger people - a reversal of previous trends.
The average combined balance on all cards in 2012 was $8,278.
Since NVRA was passed, citizens can now register to vote when they go to public assistance offices to apply for welfare or disability benefits, or at their local DMV when they apply for a drivers license — hence the nickname “Motor Voter Act” — and also allowed for mailed-in registration forms. The result was that over 30 million people registered via the new paths opened by NVRA in its first year.
It used to be that many Americans entered retirement having paid off their mortgages and most of their other debts. This should have been senior citizens' Golden Years.
Nowadays, more and more people over the age of 65 are struggling with mounting debt levels, fueled primarily by mortgages and credit cards. The average debt held by senior citizens has ballooned to $50,000 in 2010, up 83% since 2001, according to Federal Reserve data crunched by the Employee Benefit Research Institute. [...]
With a contracting retirement income system, rapidly rising health-care costs, and the prospect of long-term care expenses, one would have thought that people approaching retirement would be paying off their credit card debt and closing out their mortgages. But surveys suggest that people are entering retirement with more debt than ever before and relying on borrowing to cover expenses in retirement.
Last month Nevada joined a growing number of states and cities that are forbidding companies from using credit checks to make employment decisions. But the practice is still legal under federal law. [...]
Credit reports weren’t designed to be job-screening tools. But about half of employers now use them when making hiring decisions, according to a 2012 study by the Society for Human Resource Management. The practice cuts across all sectors of the economy, from high-level management to office assistants, home health-care aides, and people who work the counter serving frozen yogurt.
For some job seekers, repeated rejection by potential employers may be traceable to an unlikely source: their credit report.
Regulators are cracking down on some of the methods companies are using to screen candidates (two major companies this week were accused of using background checks to discriminate against black applicants.) But employers’ use of credit checks during the hiring process is legal and fairly common.
A Supreme Court decision Monday that struck down an Arizona law requiring people to provide proof of citizenship when registering to vote was hailed by voting-rights advocates as a big win. But several legal scholars say the ruling, written by Justice Antonin Scalia, could in fact set back the voting-rights cause in cases to come.
Can some types of debt cause the blues? Why are people approaching retirement age carrying credit card debt? This column shares results from recent research about credit card debt among older Americans. [...]
Q. How would you summarize the decision in a single sentence?
A. The court effectively rolled back an important provision of the Voting Rights Act, ruling that the act’s formula requiring federal preapproval of election changes for some states but not others was outdated because it was based on data from the 1960s and ’70s.
Q. Did anything in in it — or in the justices’ votes — surprise you?
A. I was not surprised by the votes of the particular justices.
Five Supreme Court Justices just rolled back the most effective civil rights provision in our nation's history. What should we do now?
One option is to declare "mission accomplished" and forget about race in politics.
That, however, will not work. Although we have made amazing progress in the past fifty years, too many state and local politicians still maintain power by manipulating election rules.
The Supreme Court dealt the Voting Rights Act a serious body blow Tuesday, but it did leave Congress an out. The court said, “Congress—if it is to divide the States—must identify those jurisdictions to be singled out on a basis that makes sense in light of current conditions.”
The Supreme Court just declared that the Civil War is no longer relevant to the history and administration of racial justice in America.
In a sense, the court's decision in Shelby County v. Holder validated a generations-long effort -- first by Democrats and later by Ronald Reagan and the Bush family -- to throw off the moral weight that slavery and the Civil War had placed on the South. [...]
Afraid your bad credit may be holding you back from a great job?
That soon may not be a concern for job-hunting New Yorkers, as the Credit Privacy in Employment Act passed the New York Assembly on June 20. The act will largely ban employers from using credit reports to influence employment decisions.