{"id":3575,"date":"2014-02-10T12:00:08","date_gmt":"2014-02-10T16:00:08","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=3575"},"modified":"2014-02-10T03:05:27","modified_gmt":"2014-02-10T07:05:27","slug":"credit-card-challenges-boomer-women-are-facing","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=3575","title":{"rendered":"Credit Card Challenges Boomer Women Are Facing"},"content":{"rendered":"

\"forbes\"<\/a>Credit cards have been top of mind for me, and, I suspect, many of you lately. Hardly a week goes by without news of another credit and debit card security breach at major retailers.<\/p>\n

But the new\u00a0Americans and Credit Cards study<\/a>\u00a0from\u00a0Credit.com<\/a>\u00a0is making me especially concerned about the way some women are using their cards.<\/p>\n

The survey polled 2,223 adults online, but Credit.com\u2019s Director of Consumer Education,\u00a0Gerri Detweiler<\/a>, culled the data for\u00a0Next Avenue<\/a>\u00a0to share the card habits of women aged 45 to 60.<\/p>\n

(MORE<\/strong>:\u00a0The Dirty Little Secret About Baby Boomer Debt<\/a>)<\/p>\n

She found that although roughly one in three of the women (36%) had no credit card debt, those who\u00a0do<\/em>\u00a0carry balances are juggling a fair amount. About 26%of them carry balances of $5,000 or more and 15% have balances of $10,000 or higher.<\/p>\n

Long Battle With Credit Card Debt<\/strong><\/p>\n

And quite a few have been dealing with debt for a while. According to the survey, 28% of the midlife women are more likely to say they\u2019ve been battling debt for five or more years, compared to 19 percent of the general population.<\/p>\n

Nearly half (49%) felt they had too much credit card debt, often feeling that it has hurt their credit score.<\/p>\n

They\u2019re probably right.<\/p>\n

Coming to Terms With Card Woes<\/strong><\/p>\n

Some good news: For the women who carry credit card debt, more than two thirds said it\u2019s somewhat or extremely important to them to have a plan in place that will get them out of this debt this year.<\/p>\n

And many are taking action. Nearly 60% have started budgeting; one in four have consolidated credit card debt.<\/p>\n

Around 45% felt it\u2019s extremely likely they will be able to eliminate all credit card debt in 2014. They might be optimistic, but I like their determination.<\/p>\n

(MORE:\u00a0<\/strong>Should You Sign Up for a Store\u2019s Card?<\/a>)<\/p>\n

Why Women Have So Much Card Debt<\/strong><\/p>\n

What was the\u00a0reason<\/em>\u00a0the women had racked up so much on their cards?<\/p>\n

It wasn\u2019t frivolous spending on clothes or trips to the Caribbean. About one-third said unexpected household expenses \u2014 a surprise need for a new roof or appliance \u2014 was the cause. Roughly 20% were slammed with unexpected medical expenses and more than 8% tapped their cards for educational expenses, such as tuition.<\/p>\n

All I could think was: If only they\u2019d socked away money in an emergency fund.<\/p>\n

Advice for Card ID Theft<\/strong><\/p>\n

Given the recent news about the hacking of Target, Neiman-Marcus and Michael\u2019s cards, I also asked Detweiler for her tips on what to do if your personal financial information was exposed or you face this issue down the road. In my mind, it\u2019s not a question of \u201cif,\u201d but \u201cwhen.\u201d<\/p>\n

\u201cIf you used a debit card at one of those stores during that time, I would encourage you to cancel it, especially if it\u2019s tied to your main checking account where most of your money is deposited or it\u2019s the account you pay bills from,\u201d Detweiler says.<\/p>\n

And if your credit or debit card is compromised in the future, she adds, contact your issuer immediately and ask for a replacement.<\/p>\n

After a breach, Detweiler says, you should also\u00a0check your credit reports<\/a>\u00a0to see whether anyone has been using your cards. You\u2019re entitled to receive at least one free credit report every 12 months from each of the three big credit bureaus (Equifax, Experian and TransUnion).<\/p>\n

Go to\u00a0AnnualCreditReport.com<\/a>\u00a0to order your reports; that\u2019s the government-sanctioned site.<\/p>\n

Fraud Alerts and Credit Freezes<\/strong><\/p>\n

\u201cIf you see something suspicious, you may want to consider placing a fraud alert on your file,\u201d Detweiler adds. That\u2019s a flag placed on your credit files to tell lenders that they should take special precautions to ensure your identity before extending credit.<\/p>\n

But Detweiler doesn\u2019t think you should place a credit freeze \u2014 preventing lenders from extending credit in your name \u2014 unless you know you\u2019ve been a fraud victim. \u201cA freeze is a huge hassle,\u201d she says.<\/p>\n

My two cents: If you find mistakes on your credit report, contact the credit bureau directly. And be wary of other sites and services pushing \u201cfree\u201d credit reports. They\u2019re typically trying to sell you something else or may even be cons to collect personal information.<\/p>\n

No Need to Live Card-Free<\/strong><\/p>\n

Some of my friends vow to pay for purchases only with cash whenever possible. I think that\u2019s not necessary and not terribly realistic.<\/p>\n

Nor is it in your best interest. To maintain a good credit history, keep your\u00a0credit score<\/a>\u00a0high and snag the lowest loan rates and insurance premiums, you need to show that you manage debt wisely.<\/p>\n

Instead, I say the best thing you can do is to review your bank and card statements regularly for possible fraud. And aim like the women in the Americans and Credit Cards survey to become debt-free.<\/p>\n

Kerry Hannon has spent more than 25 years covering personal finance for Forbes, Money, U.S. News & World Report and USA Today. Her website is\u00a0kerryhannon.com<\/a>. Follow her on Twitter\u00a0@kerryhannon<\/a>.<\/em><\/p>\n

Read the original article here<\/strong><\/em><\/a><\/p>\n

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