Abstract
Using data from the 2000 Health and Retirement Study (HRS), this study examined the probability of older Americans holding consumer and mortgage debt. The specific objectives of this study were to identify to what extent individuals aged 65 and over hold consumer or mortgage debt and to investigate factors that influence the probability of holding consumer or mortgage debt in old age. The results of logistic regression analysis indicated that older individuals who had larger households, had higher levels of education, were aged 65–74, were married, were Black, and were employed, were more likely to hold consumer or mortgage debt. This study concluded that holding one kind of debt is associated with probability of holding another kind of debt.
Similar content being viewed by others
References
AmericaSaves (2002). Black Americans hold much less wealth than other Americans. Retrieved August 31, 2002, from http://www.americasaves.org/back_page/savinginamerica_first.cfm
Aizcorbe, A. M., Kennickell, A. B., & Moore, K. B. (2003). Recent changes in U.S. family finances: Evidence from the 1998 and 2001 survey of consumer finances. Federal Reserve Bulletin, 1–32. Retrieved September 24, 2004, from http://www.federalreserve.gov/ pubs/bulletin/2003/0103lead.pdf
Butrica, B., Iams, H., & Smith, K. (2003). It’s all relative: Understanding the retirement prospects of baby boomers. Center for Retirement Research at Boston College, working paper #2003-21. Executive Summary. Retrieved February 25, 2004, from http://www.bc.edu/centers/ crr/wp_2003–21.shtml
Chien, Y., & DeVaney, S. (2001). Using credit to cover living expenses: A profile of a potentially risky behavior. Journal of Consumer Affairs, 34(1), 162–179.
Copeland, C. (2004). Debt of the elderly and near elderly, 1992–2001. Employee Benefit Research Institute Notes, 25(4), 1–13. Retrieved January 10, 2004, from http://www.ebri.org/notepdfs/0404notes.pdf
DeVaney, S. A., & Chiremba, S. T. (2005). Comparing the retirement savings of the baby boomers and other cohorts. Retrieved March 29, 2005, from http://www.bls.gov/opub /cwc/print/cm20050114ar01p1.htm
Draut, T., & McGhee, H. C. (2004). Retiring in the red: The growth of debt among older Americans. New York: Demos. Borrowing to make ends meet Briefing Paper #1. Retrieved November 14, 2004, from http://www.demos-usa.org/pubs/ Retiring_In_The_Red_WEB.pdf
Dugas, C. (2002). American seniors rack up debt like never before. USA today. Retrieved September 24, 2004, from http://www.usatoday.com/money/perfi/retirement/2002-04-25-elderly-debt.htm
Employee Benefit Research Institute (2004). American’s future retirement security: Implications of the EBRI-ERF retirement security projection model. EBRI Issue Brief, 16, Retrieved August 1, 2005, from http://www.ebri.org
Gist, J., & Figueiredo, C. (2002a). Deeper in debt: Trends among mid-life and older Americans. AARP Public Policy Institute. Retrieved September 24, 2004, from http://research.aarp.org/econ/dd70_debt.html
Gist, J., & Figueiredo, C. (2002b). Deeper in debt redux: Housing and nonhousing debt burdens. AARP Public Policy Institute. Retrieved September 24, 2004, from http://research.aarp.org/econ/dd75_debt.html
Glass, J.C. Jr., & Kilpatrick, B. (1998). Financial planning for retirement: An imperative for baby boomer women. Educational Gerontology, 24, 595–617.
Hogarth, J. M. (1991). Asset management and retired households: Savers, dissavers, and alternators. Financial Counseling and Planning, 2, 97–121.
Hong, G. S., & Swanson, P. (1995). Comparison of financial well-being of older women: 1977 and 1988. Financial Counseling and Planning, 6, 129–138.
Institute for Social Research (2005). Health and retirement study (HRS). Retrieved May 10, 2004, from http://hrsonline.isrumich.edu
Keith, P. (1986). The social context and resources of the unmarried in old age. International Journal of Aging and Human Development, 23(2), 81–96.
Kennickell, A. B., & Starr-McCluer, M. (1997). Household saving and portfolio change: Evidence from the 1983–1989 SCF panel. Review of Income and Wealth, 4, 381–399.
Lee, Y., Lown, J., & Hong, G. (2002). Financial security of single older women aged 70 and older: How much worse off are they than single older men? Proceedings of the Association for Financial Counseling and Planning Education, 34–44.
Mathur, A., & Moschis, G. P. (1994). Use of credit cards by older Americans. Journal of Service Marketing, 8(1), 27–36.
Modigliani, F., & Brumberg, R. (1954). Utility analysis and the consumption function: An interpretation of cross-section data. In K. Kurihara (Ed.) Post-Keynesian economics. New Brunswick: Rutgers University Press.
Ozawa, M. (1993). Solitude in old age: Effects of female headship on elderly women’s lives. Journal of Women & Social Work, 8(2), 136–157.
Paulin, G. (2000). Expenditure patterns of older Americans, 1984–97. Monthly Labor Review, 123(5), 3–28.
Paulin, G., & Duly, A. (2002). Planning ahead: Consumer expenditure patterns in retirement. Monthly Labor Review, 125(7), 38–58.
Smith, J. (1997). Wealth inequality among older Americans. Journal of Gerontology, 52(B), 74–81.
Sullivan, T. A., Thorne, D., & Warren, E. (2001). Young, old, and in between: Who files for bankruptcy? Norton Bankruptcy Law Advisor, 9A, 1–10.
Tucker, J. A., Lawrence, F. C., Garrison, B. M. E., Summers, T., Hill, R. C., & Bruin, M. J. (2001). An examination of the baby boom generation’s financial preparations for retirement. Consumer Interests Annual, 47, 1–3.
Xiao, J. J. (1995). Patterns of household financial asset ownership. Financial Counseling and Planning, 6, 99–106.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Lee, Y.G., Lown, J.M. & Sharpe, D.L. Predictors of Holding Consumer and Mortgage Debt among Older Americans. J Fam Econ Iss 28, 305–320 (2007). https://doi.org/10.1007/s10834-007-9055-x
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10834-007-9055-x