AARP Hearing Center
6 Ways Gen Xers Can Beat Credit Card Debt
Follow these expert-recommended tips to pay off what you owe
Paul Spella (Getty Images, 2)
Key takeaways
- Gen Xers carry an average of $9,600 in credit card debt, the highest of any age group.
- Reviewing spending, setting clear goals and following a budget can help reduce balances.
- Balance transfers, side income and professional credit counseling can speed debt repayment.
John Auten-Schneider lived lavishly in his 20s and early 30s, splurging on designer clothes, nights out at clubs and expensive trips, like a getaway to Las Vegas to see Madonna in concert. His husband, David Auten-Schneider, wasn’t quite so extravagant but would spend freely, often buying breakfast on the way to work, frequently going out to lunch, and purchasing prepared dinners and top-shelf ingredients from Whole Foods.
Together, the couple earned $75,000 annually working in the financial services industry, but they were living beyond their means. The wake-up call came in 2005, when they realized that they had $51,000 in credit card debt.
“We had a long conversation,” says John, age 52. “How did we have decent incomes and still find ourselves in this position?”
More Ways to Benefit
- Related Benefit 1
- Related Benefit 2
- Related Benefit 3
- Related Benefit 4
- Related Benefit 5
David, age 55, spent the next day looking at their credit card and bank statements to see where every penny had gone over the previous year. Then they created a plan to pay off their debt, which entailed significantly reducing their spending and transferring balances to credit cards with 0 percent introductory rates to pay it down as quickly as possible. Two years and eight months later, they had eliminated their credit card debt.
Others in their generation aren’t faring as well. Gen Xers — those born between 1965 and 1980 — carry an average of $9,600 in credit card debt, the highest of any age group, according to a 2025 Experian report.
Several factors have contributed to Gen Xers’ debt load, including rising living costs, wages that aren’t keeping up with inflation and the financial toll of helping support both children and aging parents, says Leslie H. Tayne, founder of Tayne Law Group, a law firm in Melville, New York, that specializes in debt relief. Some of her Gen-X clients have dozens of credit cards and revolving balances in the six figures.
“What we’re seeing a lot of is people living longer on credit card debt,” Tayne says. “It becomes part of their financial solution. They’re saying, ‘I have to live with this because I don’t have any other choice.’ ”
If you’re carrying credit card debt, there are ways to pay down what you owe and kick the habit of relying on credit to pay your bills or bankroll a luxe lifestyle. It won’t happen overnight, but these tips can help.
Start with awareness
The Auten-Schneiders didn’t realize how much they were relying on credit cards to fund their lifestyle until they took the time to scrutinize their spending. “That was the eye-opener for us,” says David, who cohosts the Queer Money podcast with John.
Gaining self-awareness about how you accrued credit card debt is the first step toward paying off what you owe, Tayne says. After you’ve given yourself a reality check, take time to discuss your situation with others who are in your household or who rely on you for financial support, she says. They might need to play a role in your debt payoff journey.
Give yourself a reason to break the debt cycle
Gen Xers’ large credit card balances might stem from decades of using credit to live beyond one’s means. “This isn’t just about people who have limited income,” Tayne says. “Income becomes limited because of the expenses and bad financial habits.”
The Auten-Schneiders curbed their spending by identifying what they truly wanted in life, a step they recommend that others with debt take. “We wanted to spend more time together, to travel on cash, to save for a comfortable retirement and give back to the community,” says John. Gaining that clarity, he says, motivated the couple to stop spending frivolously and put as much as they could toward paying off their credit card bills.
Commit to a budget
Paying down debt might require some belt-tightening. Review recent bank and credit card statements to identify money wasters, such as streaming services you’re no longer using. Reshopping your auto and home insurance, negotiating a better deal on your home internet service and reducing other monthly bills can help you save money that you can put toward paying off your credit cards.
The Auten-Schneiders gave up overseas travel and started taking short trips to domestic destinations, using Groupon to score deals on their getaways. They also cut their food spending in half by using grocery coupons and buying items on sale. When friends asked them to go to expensive restaurants or clubs, they said no or suggested cheaper options.
Their cost-cutting measures allowed the Auten-Schneiders to put $1,200 a month toward their credit card balances, directing a portion of every paycheck to their credit card payments, operating on a “send it before you spend it” system, John says. They accelerated their debt payoff with cash from work bonuses and tax refunds.
Find a repayment strategy that works for you
If you’re just making the minimum monthly payments on your credit cards, you’re “spinning your wheels,” says Bruce McClary, a spokesperson for the National Foundation for Credit Counseling (NFCC), an association of nonprofit credit counseling agencies. For example, if you owe $5,000 on a card with a 20 percent interest rate and pay only the monthly minimum, it would take about 23 years to pay off the balance.
If you owe money on multiple cards, there are a few common strategies you can use. One approach is the debt avalanche method, where you tackle the card with the highest interest rate first, while making the minimum payments on the other cards. This tactic reduces the total amount of interest you pay over time. The debt snowball method, on the other hand, focuses on paying off the card with the smallest balance first while making the minimum payments on the other cards to provide a sense of accomplishment and build momentum.
The Auten-Schneiders took a different approach and used the debt-lasso method, consolidating (or “lassoing”) their debts by transferring their balances to credit cards with 0 percent introductory rates. This helped them pay off their debt faster, the couple says.
The balance-transfer strategy isn’t right for everyone. You typically need a credit score of 690 or higher to qualify for a balance transfer card, McClary says. Card issuers usually charge a 2 percent balance-transfer fee, he says, and the typical interest-free period is 12 months. If you can’t pay off what you owe in that time, you’ll incur interest on the remaining balance.
Increase your cash flow
Of course, finding ways to make extra money can help you pay off your credit card debt faster, McClary says. “I’ve talked to a number of people who take advantage of the gig economy,” he says. From pet sitting and monetizing hobbies to taking surveys and teaching courses online, there are plenty of ways to earn money on the side.
To drum up quick cash, you could sell gold jewelry, sterling silverware or other collectibles; sell used clothes online; or visit MissingMoney.com to see if you have security deposits, insurance payments or forgotten investment accounts that were turned over to state governments or federal agencies as unclaimed assets.
In addition, it might be time to dust off your résumé and look for a full-time job with a higher salary, McClary says. Building your presence on LinkedIn can raise your visibility.
Get help from a professional
To dig out of debt, you might need a hand from a professional. You could work with an attorney who specializes in debt relief, or you could find a low or no-cost certified credit counselor through the National Foundation for Credit Counseling or the Financial Counseling Association of America. A counselor can help you better manage your finances and explore ways to repay your debts, such as creating a debt management plan, consolidating your debts or negotiating a settlement with your creditors.
Steer clear of debt settlement or relief companies that contact you by phone, email or social media with promises to get you out of debt quickly. Many charge expensive fees, and working with one could negatively affect your credit score, according to the Consumer Financial Protection Bureau. “If you’re solicited, stay away,” Tayne says.
The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
AARP Membership
Join AARP for only $15 per year with automatic renewal. Get instant access to members-only products and hundreds of benefits, a free second membership, and a subscription to AARP The Magazine.
More From AARP
6 Money Mistakes You’ll Regret When You’re Older
Overly conservative investing, tax blind spots and delayed planning can undermine savings
Big Retirement Mistakes in Your 50s
Watch out — these pitfalls could derail your well-laid plans
AARP Smart Guide to Pre-Retirement
Take these steps when you’re 10 years, 5 years and 1 year away from retirement