Can credit card debt affect your Social Security benefits?
Credit card debt can significantly impact the financial health of retirees relying on Social Security. While federal law generally protects Social Security benefits from garnishment by private creditors, complications can arise from debt lawsuits. It is advisable for retirees to manage their finances carefully to avoid potential issues with creditors and maintain their credit scores.
- ▪Carrying unpaid credit card debt in retirement can create financial complications for Social Security recipients.
- ▪Federal law protects Social Security benefits from garnishment by private creditors, including credit card companies.
- ▪Creditors may still sue for unpaid debt, which can lead to complications such as levying bank accounts.
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MoneyWatch: Managing Your Money Can credit card debt affect your Social Security benefits? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
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