Talking to Clients About Credit Card Debt? Here's a Smarter Strategy to Consider

June 17, 2025

As a CFP®, you’re likely seeing a troubling trend among your clients: rising credit card balances and shrinking monthly cash flow. You’re not alone—U.S. consumers owe over $1.2 trillion on credit cards, and the average balance is now $6,380. With interest rates averaging 23.37%, carrying that kind of debt can quickly turn into a financial spiral.



This situation has been made worse by persistent inflation. More clients—especially retirees and fixed-income households—are using credit cards just to cover basic living expenses. They’re not splurging; they’re simply trying to keep up. But over time, this approach can lead to anxiety, missed payments, and a diminished sense of control over their finances.


Start the Conversation with Simple Questions


When clients bring up cash flow concerns, consider gently asking:

  • Do you currently carry any credit card balances?

  • Have you looked at how much you're actually paying in interest each month?

These questions can open the door to deeper financial planning conversations and position you to offer real, actionable solutions.


Using Home Equity to Reset the Balance


Here is a situation of clients in an exact position. Despite having strong home equity, they were cash poor and overwhelmed by mounting card payments. Together, we reviewed their monthly

obligations. What stood out was their monthly house payment of $2,512 to cover their $245,000 mortgage caused them to use their credit cards to cover additional monthly expenses. Their home was valued at $856,000; they applied for a reverse mortgage to pay off their mortgage and their existing credit card debt.


The result?

  • They eliminated their $2,512 monthly mortgage payment and payoff all high-interest credit card debt.

  • Their monthly cash flow improved dramatically.

  • They now feel more secure and in control of their financial picture.

For the right client, this approach offers a sustainable way to reduce financial pressure without taking on new monthly obligations.


Why Reverse Mortgage Programs Can Be Viable Solutions


A reverse mortgage, unlike a credit card, comes with a fixed interest rate and—critically—no required monthly payments. This means your client can free up cash without risking missed payments or negative hits to their credit score.

For clients over 62 with sufficient home equity, it can provide:

  • Immediate relief from high-interest debt.

  • An increase in monthly cash flow.

  • Peace of mind knowing they won’t fall behind on bills.

If you're advising older homeowners who are struggling with debt but sitting on unused equity, this could be the conversation that changes their trajectory. It’s not about selling a product—it’s about creating options, preserving dignity, and helping your clients age with financial security.



Could This Strategy Benefit Your Clients? Let’s Find Out!

Do any of your clients fit this scenario? Retirement in Reverse would be happy to provide a customized, hypothetical scenario to help you assess if this strategy could be a valuable solution. Let’s explore how we can make it work for your clients!


Retirement In Reverse offers Objective, Competent Advice to help you make informative decisions for your clients.

Furthermore, we have No Conflict of Interest, as we do not sell Financial Product, nor enter into financial planning engagements. We share your commitment to your clients’ financial stability and quality of life.


September 3, 2025
Physical activity is important at any age, but the biggest benefits of staying active might come in your golden years. Engaging in regular physical activity is a critical component of healthy aging, promoting wellness, functional independence, and an overall better quality of life. Key Benefits of Physical Activity Improved Attitude and Mood Exercise can significantly enhance mental health, reducing symptoms of depression, anxiety, and stress. Physical activity releases endorphins, which act as natural mood lifters, helping to improve your overall outlook on life. Better Sleep Regular exercise helps regulate your sleep patterns, making it easier to fall asleep and stay asleep through the night. Quality sleep is crucial for overall health and well-being, especially as we age. Stress Reduction Physical activity is a great way to manage stress. Exercise reduces levels of the body's stress hormones, such as adrenaline and cortisol. It also stimulates the production of endorphins, chemicals in the brain that are natural painkillers and mood elevators. Enhanced Mental Health Regular physical activity can help manage mental health conditions such as depression and anxiety. Outdoor exercise, in particular, can provide the added benefits of sunlight, which aids in the absorption of calcium and helps prevent depression. Physical Health Benefits Cardiovascular Health Sustained exercise improves cardiovascular function, reduces heart rate, lowers blood pressure, and enhances circulation. This can prevent conditions like myocardial infarction and atherosclerosis, leading to a healthier heart and vascular system. Bone and Muscle Strength Weight-bearing exercises and strength training increase muscle mass and bone density, which is especially important for aging women at risk of osteoporosis. Regular activity can delay or decelerate bone loss, reducing the risk of fractures. Improved Flexibility and Balance Activities such as stretching, bending, and twisting help maintain flexibility and coordination, which are critical for preventing falls and maintaining independence. Weight Management Regular physical activity helps control weight by burning calories and increasing muscle mass. This is crucial for managing and preventing obesity, diabetes, and other chronic conditions. Designing an Effective Exercise Program For physical activity programs to be effective for older adults, they should be multidimensional, combining: Weight Training for Strength Aerobic Exercise for Endurance Calisthenics for Flexibility Despite the clear benefits, only about 71% of adults aged 65 and over participate in leisure-time physical activity, and only one-third achieve the recommended levels. Interventions to encourage a sedentary older adult to initiate physical activity, as well as those to help maintain it, are essential. Incorporating physical activity into daily life not only enhances physical health but also contributes significantly to mental wellness and quality of life. It is never too late to start reaping the benefits of a more active lifestyle. Always consult with a healthcare provider before beginning any new exercise program to ensure it is safe and appropriate for your health conditions. By embracing regular physical activity, older adults can look forward to a more vibrant, independent, and enjoyable life. Find a physical activity that you love doing and do it every day, soon it will become a healthy habit. Have fun:) Author: Kinga Wulczynska-Lauer Disclaimer: Retirement In Reverse is a mortgage company dedicated to serving older adults, financial planners, and wealth managers with a strong focus on education and informed decision-making. While we strive to provide helpful information on a variety of topics, we are not experts in all areas. That’s why we collaborate with a trusted network of professionals—including attorneys, tax advisors, and financial planners—to help connect you with the right expert based on your individual needs. The information provided in this article is for educational and illustrative purposes only. Before making any financial, legal, or lifestyle changes, we strongly recommend consulting with a qualified professional who can review your personal situation. If you are considering Reverse Mortgage, call Ted Lange at 760-753-1568 to learn more.
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