Seniors in hock over credit card debt. Cap attempt a rare tri-partisan (D), (I), (R) effort

Published in RINewsToday on March 24, 2025

Over two weeks ago, a new AARP survey revealed that 47% of respondents who carry credit card debt use their credit cards to pay for basic living expenses that they do not have enough money to cover.  Seventeen percent of these individuals relied on using their credit card to cover month to month expenses of daily living over the last year.

These findings, detailed in the 47-page report, “Credit and Debt and Adults Age 50 Plus,” put a spot light on credit card debt as now the most common type of debt held by adults age 50 plus, including many at all income levels. The survey results drive home the point that rising costs of basic expenses for food, housing and utilities, along with skyrocketing health care costs and unexpected financial burdens, are quickly chipping away at the financial well-being of older Americans in their retirement years.

AARP’s credit card survey also found that 37% of older adults with credit card debt report that they have more credit card debt than a year ago. Nearly half (48%) of older adults who carry a credit card balance from month-to-month owe $5,000 or more, and 28% carry a balance of $10,000 or more. Almost 9 in 10 respondents (87%) say that unexpected expenses contribute to their credit card debt.

“A concerning number of older adults carry credit card debt today just to make ends meet,” said Indira Venkat, AARP Senior Vice President of Research in a statement released on March 10, 2025 announcing the findings of this survey. “Credit card debt can jeopardize retirement security. For many retirees, who often live on a fixed income, it’s a real challenge to pay down debt without significant trade-offs,” she says.

The survey also found that older adults are the most likely to carry a monthly balance, including people ages 50-64, those with incomes under $40,000, as well as Black and Hispanic/Latino older adults. More than half (52%) of adults ages 50-64 have credit card debt. Significant portions of those ages 65-74 (42%) and 75 and older (35%) also carry credit card debt.

Credit card debt results in long-term financial strain of the older card holder. Among those who are worried about their credit card debt, the survey found that 43% are very worried about how long it will take to pay off their debt. Roughly 1 in 5 expect to take more than five years to pay it off. The top drivers of credit card debt include everyday expenses, including vehicle costs, housing costs, and health care.

Fifty percent of the respondents say that health care expenses have contributed to their credit card debt, noted the survey findings. Among this group, the biggest medical expenses contributing to debt are dental expenses (46%), prescription drugs (35%), and vision care (19%)

And, twenty-three percent say they are still paying off balances on cancelled credit cards. As a result, forty-six percent say credit cards have hurt their ability to save for the future.

Bipartisan efforts on Capitol Hill to cap high credit card interest rates

With credit card interest at an all-time high, carrying high-interest credit card debt month-to-month can be risky for those who struggle with paying of the balance as the interest accrues.

This financial issue brings together two strange bedfellows— Sen. Bernie Sanders (I-Vt.)  a democratic socialist advocating for progressive policies like universal healthcare and wealth redistribution, and Sen. Josh Hawley (R-Mo.), a conservative populist focused on nationalism, traditional values, and limiting government intervention—to cap high credit interest rates.

On Feb. 4, 2025, the Senators introduced their bipartisan legislation, S. 381, the 10 percent Credit Interest Rate Cap Act, that caps credit card interest rates at 10% for five years to provide financial relief to consumers facing high interest debt.  Later, Sen. Jeff Merkley (D-OR) would become a cosponsor.

S. 381 was referred to the Senate Banking, Housing, and Urban Affairs for consideration.  A companion measure, H.R. 1944 was introduced by Rep. Alexandria Ocasio-Cortez and referred to the House Committee on Financial Services.

The legislation responds to concerns about rising credit card debt, which reached a record $1.17 trillion in the third quarter of 2024. At that time, the average credit card interest rate was approximately 28.6%, significantly higher than the proposed 10% cap.

Capping high interest rates can easily help credit older adults, burdened by credit card debt.  According to Sander’s statement, “If a consumer has a $5,000 credit card balance with a 28% interest rate and can only afford to make the minimum payment of $166 a month it would take that person over 24 years to pay off and would cost nearly $11,000 in interest. If credit card interest rates were capped to 10%, that same consumer would save over $7,000 in interest.

“During the campaign, President Donald J. Trump pledged to cap credit card interest rates at ten percent,” Sanders said. “When large financial institutions charge over 25 percent interest on credit cards, they are not engaged in the business of making credit available. They are engaged in extortion and loan sharking. We cannot continue to allow big banks to make huge profits ripping off the American people. This legislation will provide working families struggling to pay their bills with desperately needed financial relief,” he says.

“Working Americans are drowning in record credit card debt while the biggest credit card issuers get richer and richer by hiking their interest rates to the moon. It’s not just wrong, it’s exploitative. And it needs to end,” said Hawley. “Capping credit card interest rates at 10%, just like President Trump campaigned on, is a simple way to provide meaningful relief to working people. Let’s do it,” he said.

While the bill aims to alleviate the financial burden on consumers, the American Bankers Association (ABA) argues that such a cap would have a devastating effect on access to credit for individuals and small business owners who use their personal credit cards as a form of liquidity by imposing an all-in annual percentage rate cap at 10 percent.  A cap on credit card interest rates is a price control on credit that will lead to credit shortages for consumers, charges ABA.

Reaching across the aisle 

On Sept. 18, 2024, at Uniondale, New York, at a campaign rally GOP presidential nominee, President Trump, then candidate Trump, promised to cap interest rates at 10% to provide temporary and immediate relief for hardworking Americans who are struggling to make ends meet and cannot afford hefty interest payments on top of the skyrocketing costs of mortgages, rent, groceries and gas.

As duly elected President, now Trump has the opportunity to work with Senators Sanders and Hawley and Rep. Ocasio-Cortez to put an end to hefty interest payments as he promised over six months ago on the campaign trail.  Trump now can put partisan politics behind, urging the Republican-controlled Senate and House to S. 381 and H.R. 1944 a fair committee hearing and floor vote.

Hopefully, the Rhode Island legislative delegation will quickly support the bipartisan proposals in both chambers, signing on as cosponsors.

Capping high credit card interest rates might just be one way to bring the two warring political parties together on behalf of American consumers.  Let’s see.

NOTE:  The findings of AARP’s Credit Card Debit Survey are based on a survey of 4,846 adults ages 50-plus who carry over credit card debt from a previous month, whether on active cards or cancelled cards.

To read AARP’s latest Credit Card Debt Report, to go www.aarp.org/content/dam/aarp/research/topics/work-finances-retirement/financial-security-retirement/credit-card-debt-survey.doi.10.26419-2fres.00929.001.pdf

To watch former president and GOP presidential nominee, Donald J. Trump, calling for capping high interest rates on Sept. 18, 2024, go to www.c-span.org/program/campaign-2024/former-president-trump-campaigns-in-uniondale-new-york/648902

Learn more about AARP’s resources for managing money. go to  https://www.aarp.org/tools/money/?cmp=RDRCT-TOOLS-MONEYTOOLS-09262024.

Senior Agenda Coalition of RI unveils its 2025 legislative priorities at forum,

Published in RINewsToday on March 17, 2025

On March 14, 2025, hundreds of older Rhode Islanders, aging network providers, state officials, and lawmakers gathered at the Senior Agenda Coalition of Rhode Island (SACRI)’s 2025 legislative forum, “United Voices for Meaningful Advocacy” at the Crowne Plaza in Warwick. With the RI House deliberating the FY 2025 budget and key legislation impacting older adults, SACRI announced its legislative priorities.

SACRI Board Chair Kathy McKeon gave welcoming remarks, giving recognition to major sponsor Delta Dental.  Serving as master of ceremonies, Executive Director Carol Anne E. Costa kept the three hour Legislative Forum on track.

SACRI Policy Advisor Maureen Maigret gave an overview and highlighted the growing influence of Rhode Island’s aging population.

“We’re 200,000 strong and growing,” she said, noting that within five years, one in four Rhode Islanders will be 65 or older. In 21 of the state’s 39 cities and towns, older adults now make up at least 20% of the population, with some communities reaching over 30%.

The Economic Impact of Older Adults

Maigret noted that 21% of older Rhode Islanders still work, many are caregivers for loved ones, and vote in higher numbers than any other age group. About 12% are veterans, and many volunteer at senior centers, Meals on Wheels, RSVP, and The Village Common of RI.

Older adults also contribute significantly to the economy. According to AARP’s Longevity Economic Outlook report, those aged 50 and older generate 40% of the nation’s GDP. In Rhode Island, retirees inject $4 billion into the economy through Social Security benefits.

However, many older adults struggle financially. “The ‘forgotten middle’ falls through the cracks,” Maigret said, referring to those with low incomes who don’t qualify for Medicaid or other public benefits. Long-term care costs are rising, and even with home equity many middle-income adults will not be able to pay for long-term.

Census data reveals that one in four Rhode Island households headed by someone 65 or older  have incomes less than $25,000 annually, and nearly half have  less than $50,000. The average Social Security benefit is $23,995, with men receiving $26,372 and women $23,565.

Shaping SACRI’s 2025 Legislative Agenda

Survey results from SACRI’s October 2024 Conference guided this year’s priorities. Among 241 respondents (42% aged 75 and older), top concerns included healthcare costs and access, economic security, housing, and community supports.

SACRI’s top priority is expanding the state’s Medicare Savings Program (MSP) by increasing income and asset limits. “Expanding MSP eligibility would provide an extra $185 monthly, or $2,200 annually, to thousands of older adults,” Maigret said. The federal government would cover the cost of those newly eligible. This extra income could help with food, utility bills, or rent and a boon to the state’s economy, she said.

With primary care practices closing due to retirement and low reimbursements, SACRI is pushing for a rate review to ensure competitive payments.

Though fewer than 5% of older Rhode Islanders live in nursing homes, Maigret stressed the importance of addressing the industry’s staffing shortages,  and substandard care, SACRI supports increasing wages for direct care staff, rewarding high-performing nursing homes, ensuring financial transparency, and preventing Medicaid cuts.

To address the housing crisis, SACRI advocates for fair allocation of state housing funds for housing for older adults and persons with disabilities. With public housing waitlists up to five years long, this is essential. SACRI is also pushing to expand income eligibility for the property tax relief program to $50,000 and mandating accessibility features in new developments.

Aging in place is another priority. SACRI calls for adding $600,000 ($10 per person age 65 and older) to the state budget to support community senior centers and enacting a caregiver tax credit to assist Rhode Island’s 112,000 caregivers, who spend an average of $7,000 out of pocket annually.

SACRI also seeks to increase Medicaid’s asset limit from $4,000 to $12,000 to help older adults on Medicaid remain at home. Additional funding for volunteer programs and continuing the “Ride to Anywhere Pilot” are also on SACRI’s agenda.

Maigret also noted SACRI is in close contact with the state’s Congressional delegation to oppose any harmful Medicaid cuts or changes in Social Security.”

Lawmakers Respond

Bringing greetings from House Speaker Joe Shekarchi, Rep. Lauren Carson (D-Dist. 75, Newport), who chairs the Special Legislative Commission on Services and Programs for Older Rhode Islanders, acknowledged the political power of older voters. “In the 2024 primary, 87% of voters were over age 85. I paid close attention to that,” she said.

Carson emphasized the importance of protecting Social Security, Medicare, and Medicaid. “Social Security is a promise. We paid into it. We can’t lose that program,” she said.

She highlighted legislative victories from 2024, including a $10 million investment to stabilize nursing homes, raising the pension exemption from $20,000 to $50,000, and launching the “Digital Age” initiative to bridge the digital divide. However, she stressed that more work remains.

Carson is also leading efforts to eliminate ageist language from state statutes, replacing terms like “elderly” and “senior citizen” with “older adults.” “We’re living diverse lifestyles beyond age 60, and our language should reflect that,” she said.

Representing Senate President Dominick J. Ruggerio (D-Dist. 4, North Providence, Providence) Senator Jacob E. Bissaillon (D-Dist. 1, Providence), chair of the Senate Committee on Housing & Municipal Government, echoed Carson’s concerns. He warned that state lawmakers must protect hard-won progress in light of potential federal cuts and a $250 million state budget shortfall.

Bissaillon called for addressing the housing crisis. “There are 150,000 Rhode Island households paying over 33% of their income on housing. We need 20,000 more affordable units and 2,000 permanent supportive housing units,” he said. He also supports eliminating the state income tax on Social Security and pointed to the Senate’s newly established Artificial Intelligence and Emerging Technologies Committee noting it is important aims to protect older adults from cyber scams. “It’s critical that Rhode Island keeps pace with technology,” Bissaillon said “We have our work cut out for us,” he concluded.

Following the legislative priorities session, Carlson called to order a meeting of the Special Legislative Commission on Services and Programs for Older Rhode Islanders.

At this time, Elizabeth Dugan, PhD from the University of Massachusetts Gerontology Institute presented highlights from the 2025 RI Healthy Aging Data Report scheduled for full release on May 1st.

A Final Note…

It was obvious today that older voices must be heard,” said Director Mary Lou Moran of the City of Pawtucket’s Division of Senior Services, emphasizing the importance of SACRI’s Legislative Forum . She noted that the event provided a valuable opportunity for seniors, aging advocates, and organizations to gather and share the latest information, resources and more importantly hear from the State’s legislative leaders.

Moran expressed her support for SACRI’s  advocacy for the State to allocate $10 per person aged 65 and over to communities  to fund senior centers and senior programs. “Senior centers play a vital role in helping older Rhode Islanders age in place within their communities and offer innumerable opportunities for social engagement, healthy living opportunities, and act as a reliable resource for not only them but for their families and their caregivers” she explained.

Moran also strongly supports SACRI’s efforts to increase the income eligibility for the state’s Medicare Savings Program (MSP). By participating in MSP, individuals can have their Part B Medicare premium covered, and for some low-income participants, the program also helps with prescription drug costs. “Reducing the cost of Part B premiums and, for some[]  who are income eligible, covering  prescription drug expenses allows older adults to redirect those savings toward essentials like rent,  utilities, and food,” she added. 

To watch SACRI’s Leadership Forum held on March 14, 2025, go to:                                                                https://capitoltvri.cablecast.tv/show/10954?site=1.    

To view Larson’s  Special Legislative Commission on Services and Programs for Older Rhode                                                            Islanders held at SARCI’s Leadership Forum, go to:                                                                          https://capitoltvri.cablecast.tv/show/10955?site=1.

To learn more about SACRI, go to https://senioragendari.org/

A snapshot of older travelers, and travel tips

Published in RINewsToday on March 10, 2025

Larry Tetreault, 78, and wife Diane, 72, don’t spend their days sitting in rocking chairs on their porch in Narragansett.  For over 20 years, the former educators have traveled quite a bit, mostly taking international trips,” says Larry. These trips, usually to warmer climates (Bahamas, Bermuda, and Aruba), “put a spring in our steps,” he notes.

“Oftentimes we travel to upper New York state to visit old friends,” he says, noting that sometimes their son, his wife, and the grandkids,come along, too.

After a lifetime of work, the Narragansett residents (formerly from Pawtucket) admit that they enjoy their traveling. “It helps us to relax, and it makes life a whole lot more enjoyable,” says Larry, a former Pawtucket City Councilor. “We’re making the most of the time we have left by doing things that we enjoy, like travelling” he adds.

Next week, the Tetreaults are planning to travel to Aruba for a two-week stay. “It’s a beautiful place to visit, well-managed, clean,  literally little crime, and great weather,” notes Larry.  

Like the Tetreaults, older Americans are beginning to make their travel plans this year.  Last week, AARP released 2025 Travel Trends research revealing a significant rise in the percentage of adults aged 50 and older who plan to travel, from 2024 (65%) to 2025 (70%), reflecting an upward trend beyond pre-pandemic levels. 

The study also highlights a growing preference for domestic air travel in 2025 – up from 38% in 2024 to 46% this year, surpassing traveling by personal vehicle, now at 43%, down from 49% in 2024. Contributing factors for this decrease appears to be the declining COVID concerns and reduced inflationary stress, says the report.   

Travel is Back in Full Swing for Older Adults 

The 44-page report, 2025 Travel Trends: A Survey of U.S. Adults Age 50-Plus,  examines the travel behaviors, expectations, and planning among adults – this year with a sample size of 2,970 respondents.  

“We are delighted to see that travel is back in full swing for older adults,” said Patty David, Vice President of Consumer Insights for AARP in a March 6 statement announcing the study’s release. “Spending time with family and friends is a primary motivator for adults 50 and older to travel. And it’s no surprise what benefits travel provides to older adults: Almost all respondents indicated that travel is good for their mental (95%) and physical (85%) health,” she says.

According to the AARP study’s findings, more than half (56%) of respondents said spending time with family or friends was a top motivator for travel. Like the Tetreaults, many also see travel as an opportunity to escape daily routines or focus on rest and relaxation and to rejuvenate. 

Last year, the study found that adults 50 and older took more trips than anticipated for the first time – the highest in four years. While older adults anticipated taking 3.6 trips on average, they actually took 3.9 trips on average. Adults 50-plus remain conservative in their anticipated number of trips in 2025 – about 3.6 on average, note the findings.

Though planned trips are on the rise, cost remains the main barrier to travel in 2025. Total anticipated spending, however, remains steady year over year at approximately $6,800, on average, the findings say.

AARP’s Travel Trends survey also found that in 2025 the top domestic destinations are Florida (15%), California (11%), Las Vegas (6%), New York (6%), Texas (6%) and Arizona (4%).  Where’s Rhode Island?????

Meanwhile, AARP’s Travel study findings indicate that while the older respondents anticipated taking family trips, summer trips and weekend getaways domestically, the top motivators for taking an international trip was tied to being on a person’s bucket list (22%) and family or multi-generational trips (11%).  

The researchers found that anticipation of international trips has increased from 37% in 2024 to 45% in 2025, though this still remains below pre-pandemic levels of 52%.

As to getting help for planning their trips about 40% of adult travelers expressed interested in taking an organized group trip, with a guided travel tour, of greatest interest (25%). While most older travelers are not currently aware of curated trips (60%), once learning about this, 55% express interest in having a personalized itinerary for them.

Like many of the older respondents, Tetreault’s wife does the planning for their trips “She finds information online by just cruising the internet,” he admitted that “booking a trip can be a breeze,” too.  

As to planning your trip, AARP’s survey of U.S. Adults Age 50-Plus, found that getting assistance from Artificial Intelligence (AI) planning is slow to take hold.  Although ninety-eight percent are aware of AI, only 1 in 10 (8%) say that they use it for planning purposes.  However, the researchers noted that for those who did use AI, about 94% say that using it was helpful in planning their trip. 

Tips for Older International Travelers

“Travel Smart. Travel Safe. Travel Well,” reads a handout for older travelers posted on the U.S Department of State’s (DOS) website, www.travel.state.gov.  DOS, a federal agency that manages the United States’s foreign affairs, provides the following information for older travelers to review while making your international travel plans.  

DOS recommends that older travelers learn as much about their vacation designation(s)  as they can before their departures.  Do you need to get a visa, or vaccinations? Can you take your meds into the country? Both are important questions to answer.

At least three months before your trip, DOS suggests that you check your passport’s expiration date and entry requirement for your foreign designations on your trip itinerary.  Always review cancellation policies, too. It just might be prudent to consider purchasing travel and luggage insurance, says the handout, noting that many credit card, travel or tourism companies offer this protection for an additional fee. 

Before you leave, always leave a copy of your passport and travel itinerary with a family member or friend.

According to DOS, it is prudent for older travelers to know that Medicare doesn’t cover healthcare oversees. So, do your research and identify companies that offer short-term health and emergency assistance policies to cover overseas health expenses that include emergency medical and dental services, including medical evacuations.

DOS’s travel.state.gov/destination page provides details as to any health checks or vaccinations for the country you are visiting.  Schedule an appointment with your physician six to eight weeks before your trip to get your required vaccinations.  Also, identify any environmental conditions that may exacerbate your health (attitude, pollution, humidity, etc.).

Before leaving, make sure you pack ample supply of your prescription medications, suggests DOS’s handout.  Always discuss any time zone differences with your physician to make adjustments to your medication schedule both on the way out and your return home.  Always keep your medication in their original, labeled containers.  In case of a refill in a foreign country, always know the generic name of your medications.  The embassy or consulate of the country you are visiting can tell you if your prescribed medications are not considered illegal substances under the local laws.

DOS also recommends that if you have mobility issues or use a wheelchair, make sure you determine what the hotel’s access and accommodations are for swimming pools, public facilities, restaurants, bars, bathrooms, etc.

Most important, don’t forget to learn about the currency rate of the country you are visiting. Inform your bank or credit card company that you are traveling overseas so they do not freeze your account.  Ask them if they have international banking partners where you can safely deposit or make withdraws as needed. Bring travelers check or one or two major credit cards if ATM services are not available.

Staying Connected with Family and Friends

DOS suggests that you care emergency contact information during your overseas trip. Consider completing the emergency contact section in your passport.  Give your family and friends the contact information for the nearest U.S. embassy or consulate in the country you are visiting. Investigate to see if your cellular plans offer international calling or texting packages that you can purchase to use in case of an emergency. 

Finally, DOS notes that one way to maintain emergency contact information is to enroll with the Smart Traveler Enrollment Program (STEP).  By enrolling, your information will be securely stored, and this enables the DOS, U.S. embassies, or consulates to contact you, your family or friends, in an emergency.

Travel, a valuable resource for Americans 50-plus, who spend over $236 billion annually in leisure travel, provides expert travel advice, the latest news and travel insights.  AARP.org/travel has a wealth of articles available to anyone on vacation ideas, travel tips, and destinations to make travel simple. 

To view the full 2025 survey results, visit https://www.aarp.org/content/dam/aarp/research/topics/social-leisure/travel/2025-travel-trends.doi.10.26419-2fres.00882.001.pdf.

To review DOS’s Special Consideration for Older Travelers, go to https://travel.state.gov/content/travel/en/international-travel/before-you-go/travelers-with-special-considerations/info-older-travelers.html.

To view the National Council on Aging’s Safety Travel Tips for Older Adults, go to https://www.ncoa.org/article/safe-travel-tips-for-older-adults/.