Racial Disparities in Overdue Debt Among Older Adults

Abstract

We document the prevalence and amount of debt delinquency in the United States among older adults, overall and across racial/ethnic group geographic compositions. Using administrative data on credit use for a sample of 4 million older adult borrowers, we show that about one in five consumers age 50 or older with a credit bureau record had delinquent debt in August 2022, suggesting difficulties meeting financial obligations in retirement. The prevalence of debt delinquency decreased with age, with about one in four adults ages 50 to 61 and one in six adults age 62 or older holding delinquent debt. Consumers living in local areas where a majority of residents identify as American Indian or Alaska Native, Black, Hispanic, or Asian American or Pacific Islander were more likely to have delinquent debt and/or higher median amounts of delinquent debt, relative to consumers in majority-white areas, for various types of delinquent debt.