U.S. credit card balances have soared to $1.2 trillion in Q2 2025, with average interest rates at 25%, making it difficult for many to pay off their balances. Retirees are turning to credit cards due to a $4,000 gap between income and expenses. The average credit card debt by age ranges from $3,493 for Generation Z to $9,600 for Generation X.

Paying off credit card debt is crucial for retirement planning. A $9,600 debt at 25% APR with $300 monthly payments will take 54 months to pay off, costing $6,384 in interest. By investing this amount, you could have $24,704 in 20 years.

To tackle credit card debt, consider consolidation loans, pay-down methods, or debt management plans. Taking control of credit card debt is essential to securing a comfortable retirement.

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