Disclaimer: General educational research only — not legal, tax or financial advice. Figures come from the Federal Reserve’s Survey of Consumer Finances; rules for paying debts after death vary by state, so an executor should confirm local law with a probate lawyer or the court.
Estate Planning Data & Research → Older Americans’ debt by year
A generation ago, most Americans paid off the house and the car before they reached their late 70s. That is no longer true. The Federal Reserve’s Survey of Consumer Finances (SCF), released in October 2026, found that 52.2% of families headed by someone 75 or older had some kind of debt in 2025, up from 21.0% in 1989. Among families headed by someone 65 to 74, it was 67.7%, up from 49.6%.
That matters for estate planning because debts do not disappear when someone dies. They become claims against the estate, and the executor has to deal with them before heirs receive anything. This page lays out 36 years of Federal Reserve data on what kinds of debt older families carry, how much they owe and how many are falling behind, then explains what happens to each type of debt at death and who, if anyone, has to pay it.
If you are deciding how to leave a home and other assets so your family is not left to sort out debts in court, our guide to trust vs. will explains how each one handles probate, bills and the family home.
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Cite this page URL when reusing findings. Not a substitute for official sources or professional advice.
Key findings
- Half of families 75 and older carry debt. In 2025, 52.2% of families headed by someone 75 or older owed money on a mortgage, credit card, loan or other debt, compared with 21.0% in 1989. That is about 9.5 million families, based on the public SCF data. The share peaked at 53.4% in 2022.
- The typical balance has grown more than fourfold. Among families 75 and older with debt, the median amount owed was $32,300 in 2025, compared with $7,000 in 1989, both in 2025 dollars. For families 65 to 74 with debt, the median was $53,700, up from $12,600.
- More homes still have a mortgage. 26.2% of families 75 and older had debt secured by their home in 2025, compared with 6.3% in 1989. Among those families, the median home debt was $101,000.
- Credit cards and car loans are common. 27.6% of families 75 and older carried a credit card balance from month to month (median $2,500), and 15.5% had a vehicle loan (median $13,400).
- Late payments doubled since 2022. 5.2% of families 75 and older with debt had a payment 60 days or more past due in 2025, double the 2.6% in 2022 and the highest share since 1995. For families 65 to 74 with debt, the share rose from 3.6% to 7.3%, the highest since the series began in 1989.
- More are stretched. 14.5% of debtor families 75 and older spent more than 40% of their income on debt payments in 2025, up from 8.5% in 2022 and the highest share since 2001.
- Most could still pay what they owe. Median net worth for families 75 and older was $504,900 in 2025. In the public data, only about 3.3% of families 75 and older with debt owed more than the value of everything they own. But about 70% owed more than they had in checking, savings and similar accounts, so paying debts after death often means selling a home or other assets.
Share of older families holding debt, 1989-2025
Percentage of families with any debt, by age of the head of the family. A family in the SCF is the person or couple at the center of the household and others who share finances with them.
| Survey year | All families | Head 65 to 74 | Head 75 or older |
|---|---|---|---|
| 1989 | 72.3% | 49.6% | 21.0% |
| 1992 | 73.2% | 51.4% | 31.6% |
| 1995 | 74.5% | 53.4% | 28.4% |
| 1998 | 74.1% | 51.4% | 24.6% |
| 2001 | 75.1% | 56.8% | 29.2% |
| 2004 | 76.4% | 58.8% | 40.3% |
| 2007 | 77.0% | 65.5% | 31.4% |
| 2010 | 74.9% | 65.2% | 38.5% |
| 2013 | 74.5% | 66.4% | 41.4% |
| 2016 | 77.1% | 70.1% | 49.8% |
| 2019 | 76.6% | 70.0% | 51.4% |
| 2022 | 77.4% | 64.8% | 53.4% |
| 2025 | 77.0% | 67.7% | 52.2% |
The share of all families with debt has hardly moved, from 72.3% to 77.0%. Almost all of the change has come among older families, and above all among those 75 and older, where the share went from about one in five to about one in two. The survey shows the change but does not explain it. Likely reasons include longer lives, more people refinancing or buying homes later in life, wider use of credit cards for everyday spending, and fewer traditional pensions.
How much older families owe, 1989-2025
Median debt among families that have debt, in thousands of 2025 dollars. Half of families with debt owe more than this amount and half owe less.
| Survey year | All families with debt | Head 65 to 74 | Head 75 or older |
|---|---|---|---|
| 1989 | $37.8 | $12.6 | $7.0 |
| 1992 | $38.8 | $10.9 | $5.3 |
| 1995 | $45.8 | $14.9 | $4.0 |
| 1998 | $64.8 | $23.8 | $16.1 |
| 2001 | $71.0 | $24.0 | $9.2 |
| 2004 | $95.1 | $43.0 | $26.5 |
| 2007 | $105.5 | $62.8 | $20.4 |
| 2010 | $105.7 | $67.3 | $44.8 |
| 2013 | $84.2 | $61.3 | $27.9 |
| 2016 | $80.7 | $56.7 | $27.8 |
| 2019 | $82.2 | $50.0 | $37.2 |
| 2022 | $87.8 | $49.2 | $39.0 |
| 2025 | $88.1 | $53.7 | $32.3 |
The median for older families moves around from survey to survey because it depends on the mix of debts. When more older families have a mortgage, the median jumps, because mortgage balances are much larger than card or car balances. The 2025 median for families 75 and older ($32,300) was lower than in 2022 ($39,000) but more than four times the 1989 level.
What kinds of debt families 75 and older have
Share of families headed by someone 75 or older holding each type of debt, and the median amount among those who have it. Types overlap, so the shares add up to more than the total.
| Type of debt | Share of families, 1989 | Share of families, 2025 | Median owed, 2025 |
|---|---|---|---|
| Any debt | 21.0% | 52.2% | $32,300 |
| Debt secured by their home (mortgage or home equity line) | 6.3% | 26.2% | $101,000 |
| Credit card balance carried month to month | 10.1% | 27.6% | $2,500 |
| Installment loans (car, education and other loans) | 9.8% | 23.4% | $8,500 |
| Vehicle loans | Not shown | 15.5% | $13,400 |
| Loans on other real estate | Not shown | 3.4% | $90,400 |
| Other debts (such as loans against life insurance or a retirement account) | 1.9% | 2.7% | $3,500 |
For families 65 to 74, 37.2% had home debt (median $120,000), 37.8% had a credit card balance (median $3,000), 24.3% had a vehicle loan and 5.3% still had an education loan. At this age, education loans can include Parent PLUS loans taken out for children as well as the borrower’s own loans.
Falling behind: late payments and heavy payment burdens
Among families with debt, the share with any payment 60 days or more past due in the past year, and the share spending more than 40% of income on debt payments.
| Survey year | 60+ days late, head 65 to 74 | 60+ days late, head 75 or older | Payments over 40% of income, head 65 to 74 | Payments over 40% of income, head 75 or older |
|---|---|---|---|---|
| 1989 | 3.3% | 1.2% | 7.8% | 14.1% |
| 1992 | 1.0% | 1.8% | 7.4% | 12.0% |
| 1995 | 5.3% | 5.4% | 11.3% | 7.4% |
| 1998 | 3.1% | 1.1% | 18.1% | 21.4% |
| 2001 | 1.5% | 0.8% | 14.7% | 14.6% |
| 2004 | 3.4% | 3.9% | 11.6% | 10.7% |
| 2007 | 4.4% | 1.0% | 15.6% | 13.9% |
| 2010 | 6.1% | 3.2% | 12.1% | 11.9% |
| 2013 | 4.7% | 2.7% | 12.2% | 10.0% |
| 2016 | 4.5% | 2.8% | 8.5% | 9.9% |
| 2019 | 2.5% | 2.6% | 9.6% | 9.9% |
| 2022 | 3.6% | 2.6% | 9.8% | 8.5% |
| 2025 | 7.3% | 5.2% | 10.0% | 14.5% |
Late payments among older debtors jumped in 2025. For families 65 to 74, the 7.3% share is the highest in the 36 years of the survey. For families 75 and older, 5.2% is the highest since 1995. The rise was not limited to older families. Across all families with debt, the late-payment share rose from 6.3% in 2022 to 10.7% in 2025. For families 75 and older, the bigger change was in payment burden. More than one in seven with debt was spending over 40% of income on payments.
For families, these numbers are a warning sign. An older parent who is behind on bills or spending most of their income on payments is more likely to leave debts that the estate has to sort out, and less likely to have told anyone about them.
What happens to each type of debt at death
When someone dies, their debts are generally paid out of what they leave behind, their estate, before anything goes to heirs. Family members usually do not have to pay a parent’s debts out of their own pockets. The Federal Trade Commission’s guidance lists the main exceptions: a person who co-signed the debt, a joint account holder, a spouse in some community property states or under other state laws, and an executor who does not follow the state’s rules for paying claims.
| Type of debt | What usually happens at death | Who can be responsible |
|---|---|---|
| Mortgage or home equity line | The loan stays attached to the house. Heirs who want to keep the home can usually take over the payments; whoever sells the home pays off the loan from the sale | The estate, and anyone who signed the loan |
| Reverse mortgage | The loan comes due. Heirs can sell, refinance or pay it off, and generally owe no more than the home is worth | The estate, through the home |
| Credit card | Paid from the estate if there is money to pay it. If not, it usually goes unpaid | The estate and any joint account holder. Authorized users are not responsible |
| Car loan | The lender can repossess the car if payments stop. Heirs can keep the car by paying the loan | The estate and any co-signer |
| Federal student loan, including Parent PLUS | Discharged when the borrower dies, once a death certificate is provided. A Parent PLUS loan is also discharged if the student dies | No one |
| Private student loan | Depends on the loan contract. For loans made after November 2018, federal law requires the lender to release a co-signer when the student borrower dies | The estate, and sometimes a co-signer on older loans |
| Medical bills and Medicaid estate recovery | Paid from the estate as a claim. States must seek repayment of certain Medicaid long-term care costs from the estates of people 55 and older | The estate |
Several federal rules protect families during this process:
- Keeping the family home. Under the Garn-St Germain Act, a lender generally cannot call a home loan due just because the home passes to a relative after the borrower’s death, for homes with fewer than five units. Mortgage servicers also have to communicate with heirs who confirm they now own the home (called successors in interest) and give them information about the loan.
- Settling credit cards. Card issuers must have procedures for the estate to pay a balance. Once the executor asks for the amount owed, the issuer must provide it in a reasonable time (within 30 days is a safe harbor), cannot add new fees or raise the interest rate, and must waive further interest if the balance is paid in full within 30 days.
- Debt collectors. Collectors may contact the executor or administrator, or whoever has authority to pay the estate’s bills, but they cannot say or imply that a relative must pay from their own money.
What this means for your family
- Make a list of debts while you can. With more than half of families 75 and older in debt and 70% of them owing more than they hold in bank accounts, an executor without a list can spend months reconstructing it from mail and credit reports. A simple list of each lender, account number and online login, kept with the will, saves time and money.
- Know whether you co-signed. The biggest personal risk for adult children and spouses is a loan they signed. Joint credit cards, car loans and private student loans for a grandchild are the usual ones. An authorized user on a credit card is not liable.
- Keep the house in mind. About a quarter of families 75 and older have debt on their home, so the house is often both the biggest asset and the biggest debt. A plan should say who gets the home and how the mortgage will be handled. A heir who wants to keep it should be ready to take over payments.
- Executors: do not pay in the wrong order. States set an order for paying claims, and many follow a sequence like the Uniform Probate Code: costs of handling the estate and funeral expenses, then certain federal debts and taxes, then medical bills from the final illness, then other debts. Under federal law, an executor who pays other debts before money owed to the U.S. government, such as federal taxes, can be held personally responsible. If an estate may not have enough to pay everyone, get advice before paying anyone.
- Use the probate creditor process. Most states have a deadline for creditors to file claims after a notice is published or mailed. Following that process limits how long the estate can be held open by unknown debts.
- Some assets usually pass outside the estate. Life insurance and retirement accounts with a named beneficiary generally go straight to that person and, in most cases, are not used to pay the deceased’s ordinary debts. Payable-on-death and transfer-on-death accounts can follow different rules depending on the state. Check beneficiary forms as part of any plan.
- A trust does not erase debts. Assets in a revocable living trust can still be reached to pay the creator’s debts after death in most states. A trust can, however, make it easier for a trustee to pay bills and manage a home without going through probate.
Related data
- Student loans after death by state: federal borrowers by state and what families owe when a borrower dies.
- Reverse mortgages and heirs: what heirs face when a reverse mortgage comes due.
- Paid-off homes by state: the share of homeowners 65 and older who own free and clear.
- Medicaid estate recovery by state: how states recover long-term care costs from estates.
- Probate notice to creditors by state: how long creditors have to file claims after notice.
- Older Americans’ financial complaints by state: CFPB complaints from people 65 and older, including debt collection.
Methodology
Source. All historical figures come from the Federal Reserve Board’s Survey of Consumer Finances (SCF), 1989-2025, using the Board’s historical tables in 2025 dollars (Tables 4, 13, Alternate 13 and 18, internal data version). These are the same figures published in the Federal Reserve’s report on the 2025 survey. The SCF is a national survey conducted every three years; the 2025 survey interviewed about 4,400 families. It does not produce state-level figures.
Definitions. A “family” is the primary economic unit in a household: a single person or couple and anyone else who shares finances with them. Age refers to the head of the family as the Fed defines it, not to every person in the household. “Any debt” includes mortgages and home equity lines, other real estate loans, credit card balances carried after the most recent payment, installment loans (car, education and other), lines of credit and other debts. Late payments mean any payment 60 days or more past due in the past year. Payment burden compares a family’s total monthly debt payments with its income.
Our calculations. The count of families (about 9.5 million families 75 and older with debt and 14.9 million families 65 to 74), the share of debtors who owe more than their total assets (3.3%) and the share who owe more than their checking, savings, money market and call accounts (about 70%) are Family Estate Guide calculations from the Fed’s public SCF 2025 summary data, using the survey weights. The public data are slightly altered by the Fed to protect respondents, so these estimates can differ a little from the published tables.
Limits. The SCF interviews households, so people living in nursing homes and other institutions are not included. That likely leaves out some of the oldest and least financially secure Americans. The survey asks about debts at the time of the interview, not at death. Changes between surveys can partly reflect sampling error, especially for small groups such as families 75 and older with a particular type of debt. Dollar figures are adjusted to 2025 dollars by the Fed. Late-payment and payment-burden figures include only families with debt.
Legal summary. The section on what happens to debt at death summarizes federal law and guidance (Federal Trade Commission, Consumer Financial Protection Bureau, U.S. Department of Education and federal statutes). State law decides most details, including claim deadlines and the order of payment, and those rules vary.
Frequently asked questions
How many older Americans have debt?
In 2025, 67.7% of families headed by someone 65 to 74 and 52.2% of families headed by someone 75 or older had some debt, according to the Federal Reserve’s Survey of Consumer Finances. That is roughly 14.9 million and 9.5 million families, respectively.
How much debt does the average retiree have?
The SCF reports medians rather than averages for this. Among families with debt, the median owed was $53,700 for families headed by someone 65 to 74 and $32,300 for families 75 and older in 2025. Families with a mortgage owe much more: the median home debt for families 75 and older was $101,000.
Do children have to pay a parent’s debts after death?
Generally, no. Debts are paid from the parent’s estate. Children usually become responsible only if they co-signed or were joint account holders on the debt, or if they handle the estate as executor and do not follow state rules. A spouse may be responsible in some community property states or under other state laws.
What happens if the estate does not have enough money to pay all the debts?
The estate is insolvent. The executor pays claims in the order set by state law, and debts lower in the order may get partial payment or nothing. Unpaid debts are generally not passed on to the family. An executor of an insolvent estate should get legal advice before paying any bills.
Can heirs keep a house that still has a mortgage?
Usually, yes. Federal law generally stops a lender from calling the loan due just because a home passes to a relative after the borrower dies. Heirs who keep the home need to keep making the payments or refinance. If no one does, the lender can foreclose.
Are federal student loans forgiven at death?
Yes. Federal student loans are discharged when the borrower dies, and Parent PLUS loans are discharged if either the parent or the student dies. Private student loans depend on the lender and the loan contract.
Can debt collectors contact family members after a death?
Collectors can contact the executor, administrator or other person with authority to pay the estate’s debts, and can contact others to find that person. They cannot say or imply that relatives have to pay with their own money.
How often is this data updated?
The Federal Reserve runs the Survey of Consumer Finances every three years. The 2025 survey was released in October 2026, and the next survey, for 2028, would normally be published in late 2029.
Sources
Data
- Board of Governors of the Federal Reserve System, 2025 Survey of Consumer Finances, historical tables in 2025 dollars, 1989-2025 (Tables 4, 13, Alternate 13 and 18): https://www.federalreserve.gov/econres/scfindex.htm
- Board of Governors of the Federal Reserve System, Survey of Consumer Finances 2025 public summary extract data and codebook: https://www.federalreserve.gov/econres/scfindex.htm
Law and guidance
- Federal Trade Commission, “Debts and Deceased Relatives”: https://consumer.ftc.gov/articles/debts-and-deceased-relatives
- Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.11(c), timely settlement of estate debts for credit card accounts: https://www.consumerfinance.gov/rules-policy/regulations/1026/11/
- Consumer Financial Protection Bureau, Regulation F (debt collection), 12 CFR part 1006: https://www.consumerfinance.gov/rules-policy/regulations/1006/
- Consumer Financial Protection Bureau, Regulation X mortgage servicing rules for successors in interest, 12 CFR 1024.38: https://www.consumerfinance.gov/rules-policy/regulations/1024/38/
- Garn-St Germain Depository Institutions Act, 12 U.S.C. 1701j-3(d): https://www.law.cornell.edu/uscode/text/12/1701j-3
- U.S. Department of Education, death discharge of federal student loans, 34 CFR 685.212(a): https://studentaid.gov/manage-loans/forgiveness-cancellation/death
- Truth in Lending Act, release of co-signer on death of a private education loan borrower, 15 U.S.C. 1650(g): https://www.law.cornell.edu/uscode/text/15/1650
- Medicaid estate recovery, 42 U.S.C. 1396p(b): https://www.law.cornell.edu/uscode/text/42/1396p
- Federal priority of U.S. government claims, 31 U.S.C. 3713: https://www.law.cornell.edu/uscode/text/31/3713
Cite this data
Family Estate Guide. “Older Americans’ Debt by Year: 52% of Families 75 and Older Now Carry Debt, 1989-2025.” November 2026. Data: Board of Governors of the Federal Reserve System, Survey of Consumer Finances, 1989-2025 historical tables (2025 dollars) and 2025 public summary data. https://familyestateguide.com/estate-planning-data/older-americans-debt-by-year/
Published November 3, 2026 by Family Estate Guide. Figures reflect the Federal Reserve’s 2025 Survey of Consumer Finances, released October 2026. Editorial standards.