How can retirees reduce their credit card debt?

Dear Savvy Senior: My husband and I, both retired, have accumulated about $7,000 in credit card debt over the past few years and need help paying it off. What can you tell us? — Living Underwater

Dear Living Underwater: Credit card debt has become a big problem for millions of older Americans. According to a recent AARP report, 52 percent of adults ages 50 to 64 have credit card debt.

Rising costs of basic expenses such as food, housing, utilities and health care are the main culprits. Of older adults carrying a balance, nearly half owe $5,000 or more, and nearly a third owe upward of $10,000.

While paying off credit card debt can feel overwhelming, it’s doable with a solid plan and a bit of belt-tightening and persistence. Here are some strategies:

Create a budget

Start by taking a close look at your income and expenses to see where you can free up money to put toward your credit card debt. Look for areas to reduce spending, such as dining out, entertainment or subscriptions. And see if you’re eligible for any financial assistance programs (see BenefitsCheckUp.org) that can help boost your budget by paying for things like food, utilities, medicine and health care.

Call the company

While the average credit card interest rate is more than 20 percent, some credit card companies may be willing to lower your interest rate or work out a payment plan, especially if you’re struggling. It doesn’t hurt to ask.

More than the minimum

Credit card companies only require the minimum payment, but it’s usually mostly interest. Try to pay more than the minimum every month to make a dent in the principal balance.

Repayment strategy

If you have more than one credit card, pick one and get serious about paying it off. Start with the card that carries the highest interest rate, or the one with the smallest balance.

If you focus on paying off the card with the highest interest rate first, you’ll pay less interest over time, saving yourself a lot of money. Once the highest-interest card is paid off, move to the next highest and so on.

Or you may want to start with the card with the smallest balance. Paying off smaller debts quickly can give you a sense of accomplishment and motivate you to keep going.

Consolidate debt

If you have multiple high-interest cards, look into consolidating your debt with a low-interest personal loan from your bank or credit union. Or consider moving your debts to a balance transfer credit card with zero percent interest for an introductory period, which is usually 15, 18 or 21 months. This will eliminate the amount of interest you’re paying temporarily. But be careful: Once the introductory promotion ends, the card company will charge interest on any remaining balance.

Consider a debt plan

If you need more help, use a nonprofit credit counseling agency (see NFCC.org) to create a debt management plan. At no cost, a counselor will go over your income and debts and determine what’s workable. The counselor will then negotiate with your lenders to get a payment plan that will lower your interest and monthly payments and maybe forgive some debt.

If you accept their negotiated offer, you’ll start making one monthly payment to the counseling service, which will in turn pay the issuers. You’ll probably pay the agency a small fee and give up the cards included in the plan, but over time you’ll be able to pay off your debt.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org.