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Here’s the Average Debt of 65-Year-Old Americans (How Do You Compare?)

See how your debt stacks up against the average American in their 60s and learn practical ways to pay it down.

By Andy Lindquist

Edited by Calista Headrick

Updated Nov. 5, 2025

According to Debt.org, Americans in their 60s are burdened with debt totaling $2.73 trillion. Liabilities like this can seriously derail your retirement plans if you're not careful, which means it's crucial to develop a strategy for paying them off.

Read on to learn about the average debt of Americans in the 60 to 69 age bracket, and discover how you compare. Then, we'll help you figure out how you can crush your debt.

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What is the average debt of someone in their 60s?

As Debt.org reports, Americans in their 60s owe an average of $67,574.

From mortgages to home equity debt, auto loans, credit cards, and health care costs, there are several reasons why people of that age would still be carrying such a substantial amount of debt. And since many in that demographic rely on fixed Social Security income, it can be even more challenging to pay it off, which often leads to accumulating interest payments.

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How do you compare?

If you owe less than $67,574 in total debts, you're doing much better than the average American in their 60s, which means you're in a safer position as you hit retirement.

Keep in mind that this dollar amount represents the average across all individuals in that age group; some individuals have significantly more debt, while others have far less.

And if you're feeling behind, there's still time to figure out some strategies for paying off what you owe.

How to get out of debt in your 60s

Debt in your 60s can feel stressful, but it's not a hopeless situation. Here are some winning strategies to pay down what you owe.

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1. Make a full inventory and rank by interest rate and risk

To get started, create a spreadsheet that lists every debt. Include the interest rate, minimum payment, and any potential risks from not paying. Knowing your complete debt picture is the first step in creating an actionable plan to pay it all off.

2. Use a hybrid of the avalanche and snowball methods

Both methods can be effective when used together to help you gradually get above water. Consider using the avalanche method to attack high-interest debt first, then combine it with the snowball method to pay off your smallest balances and build momentum.

3. Refinance or consolidate high-interest debts

Rolling over or transferring your high-interest debt into a lower-interest loan or line of credit can be a great way to reduce interest payments. Consider balance transfer credit cards with lower rates or explore potential options for personal loan consolidation.

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4. Use surplus income or windfalls strategically

Whenever you receive a surplus of money, consider using a large chunk of it to pay down your debt. While it can be tempting to spend it on a fancy dinner or vacation, you have to prioritize paying down what you owe before the interest eats you alive.

5. Stretch the timeline, but keep up payment momentum

Consistently making payments is the number one thing you can do to be debt-free. If that means extending your payoff timeline beyond what you'd like, it may be smart to do so. As long as you're making the payments on time and chipping away at your debt number, you're making progress.

6. Cut expenses to free up cash flow

Take a look at all your non-essential, discretionary spending, and see what you can cut out to free up more cash. From unused subscriptions, dining out, and memberships, there's likely a lot of money you're throwing away each month that could be put to use.

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7. Increase income, if possible

Consider a part-time job, freelance work, renting out a room in your house (if possible), or another method for generating additional income. Even if it's only for a few months, the extra cash flow will be of immense help.

8. Build a small emergency reserve while paying down debt

While it may seem counterintuitive, it is advisable to build up a small cash reserve in case of emergencies. Doing so can help you avoid taking on more debt when an unexpected expense arises. This small safety buffer can help you out in a pinch.

Bottom line

Debt is a natural part of American life now, even for those who are hitting their retirement years. In fact, in the first quarter of 2025, the Federal Reserve reported that U.S. household debt reached $20.3 trillion, which means you're not alone in your debt struggles.

Between mortgage payments, car loans, and credit card debt, older Americans need a solid pathway to eliminate their liabilities. Given that the average 60-year-old has $67,574 in debt, creating a solid plan is a must to help improve your financial fitness.

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