The CFPB Reports Mortgage Debt Key Factor in Increasing Levels of Debt Among Older Americans
The Consumer Financial Protection Bureau has been tracking the increasing levels of debt among older Americans. They found that older homeowners are now carrying more mortgage debt than ever before. For many of the roughly 4.4 million retired homeowners with mortgages, making monthly mortgage payments on a fixed income on top of other monthly expenses is a hardship. They also found...
- In general, older consumers carry more debt, including mortgage, credit card, and even student loan debt, into their retirement years than in previous decades.
- Mortgage debt, the largest debt that older consumers carry, is the key driver of this trend. Today, compared to a decade ago, fewer older homeowners own their home outright.
- Today, fewer older homeowners own their homes free and clear. The share of homeowners with a mortgage increased from 22 to 30 percent between 2001 and 2011.
- The total median value of the mortgage debt also increased from approximately $43,400 to $79,000.
America Saves believes that, with the proper preparation, homeownership can still help individuals build wealth. We have a number of resources to help you save successfully for a home:
- Why America Saves promotes home ownership
- How to save for a larger down payment
- Strategies for building and preserving home equity
- Estimate your current and future home wealth
If you do find that you have too much debt and are having trouble paying bills visit our Debt section to learn how to get out of debt and where to get help.
If you are saving for a home or want to pay down your debt don’t forget to take the America Saves Pledge and choose to receive emails and/or text messages to help you save.
- Written by Katie Bryan
- Category: Blog
- Published: 29 May 2014