Family Credit

U.S. household debt reached a record high in 2025, and for retirees living on fixed incomes, high-interest credit card balances can be especially difficult to manage. CBS News MoneyWatch addressed this challenge directly in a December 2025 piece on debt reduction strategies for seniors heading into the new year, featuring expert guidance from Family Credit Management President and CEO Michael McAuliffe alongside other financial professionals.

The article outlines three core approaches worth considering. The first is an honest review of monthly expenses to identify where money is going and what can be cut or reduced. The second is working to lower the cost of existing debt, particularly high-rate credit card balances, before trying to increase payments. McAuliffe's contribution here was especially practical: he encouraged retirees to call their credit card companies directly to request a lower interest rate or a promotional rate, to ask for a supervisor if the first representative declines, and to try again if the first call does not go their way. It is a simple step that many people skip simply because they do not know it is an option.

The third strategy McAuliffe addressed is the debt management plan, which can be a meaningful tool for retirees who are struggling to keep up with payments. By consolidating debt through a nonprofit credit counseling agency, retirees may be able to lower their monthly payment obligations and reduce interest rates significantly, creating breathing room in a budget that inflation has already stretched thin.

For retirees who feel like they have run out of options, this piece is a reminder that there are still concrete steps worth taking, and that asking for help sooner rather than later almost always leads to a better outcome.

Read the full article at CBS News.