This Generation Has the Largest Credit Card Balances. Here's Why That's a Problem

Credit card debt is a problem for people of all ages. It can be costly due to interest charges, and it has the ability to wreck an otherwise solid credit score.

But while credit card debt is prevalent across American consumers on a whole, one generation seems to have more of it than any other, according to data from New York Life. And it's a generation that really can't afford to be carrying such high balances.

Gen Xers have balances that are dangerously high

Gen Xers with credit card debt report owing $9,434.42 on average, says New York Life. That's a higher level of credit card debt than any other generation.

Here's why that's problematic, though. Older Gen Xers are already in their mid-50s, which means they may be within a decade of retirement. And it's very much not a good thing to retire with credit card debt, because during that stage of life, incomes tend to decline.

Now, imagine you're used to living on $5,000 a month. But in retirement, you only have an income of $3,000 a month between your savings and Social Security. Chances are, you're going to have to make some lifestyle changes to account for that drop. But think about how much harder it might be to have to juggle credit card payments on top of your other bills at a time like that.

That's why it's so important to try to shed your credit card debt quickly if you're a Gen Xer who has a lot of it. Granted, anyone with credit card debt should try to eliminate it quickly to save money on interest and limit credit score damage. But it's especially important for pre-retirees to try to get out of debt while they still have a paycheck coming in.

Your game plan for shedding debt

Let's say you're 55 and want to retire at 65. At this point, it's time to get serious about knocking out your credit card debt. And doing so could boil down to a combination of cutting back on spending and boosting your income with a second job.

Rest assured that side hustles aren't just for millennials. Plenty of older people work side gigs for various reasons. In fact, AARP reports that 40% of Gen Xers have a side hustle, while 24% of baby boomers, some of whom may already be retired, have one as well.

In addition to boosting your income and cutting expenses, you can consider ways to make your credit card debt less expensive to pay off. Rolling it into a home equity or personal loan could be a wise move because you might lower the interest rate you're paying on your balances substantially. Plus, this way, you get to benefit from fixed monthly payments that may be easier to keep track of.

Credit card debt is far from ideal no matter how old you are. But it's something you really don't want to be dealing with as a retiree. So if you're creeping closer to that stage of life and still have a lingering balance, it's best to do what you can to knock it out -- even if that means having to make some sacrifices.