I’m 73 with $19k in credit card debt. Should I use my savings to pay it off?

Sydney Morning Herald

by Noel Whittaker

February 24, 2026

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I’m 73 with $19k in credit card debt. Should I use my savings to pay it off?

A 73-year-old widow with $19,000 in credit card debt and $100,000 in savings faces a tough financial decision: whether to use her savings to pay off the debt or keep it as a safety net. The interest difference between her high-interest savings account (4.5%) and the credit card’s 13.99% is significant, costing her nearly $50 a week—money she can’t afford to lose. Experts advise against keeping the debt, as it erodes her savings faster than it grows. Instead, they recommend paying off most of the debt but leaving a small balance ($10) to keep the credit card open for emergencies. The woman, who worked full-time until age 71 and now relies on her pension, fears losing her financial cushion. By keeping the debt, she’s wasting money on interest that could be better used elsewhere. Eliminating the debt would free up her savings, allowing it to grow in a high-interest account while reducing her overall financial stress. This move doesn’t weaken her safety net—it improves it by removing a guaranteed loss. Her situation highlights the importance of balancing short-term savings with long-term financial health. While she’s concerned about depleting her savings, paying off the debt is ultimately more beneficial for her peace of mind and financial

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Originally published on Sydney Morning Herald on 2/24/2026