Credit card debt has direct links to old age loneliness, research finds

A lack of emergency savings during the early months of the Covid-19 pandemic didn’t just create financial stress for older adults, it also contributed to heightened loneliness, a new study has found.

The new study from The Ohio State University found that adults over 65 experienced increased loneliness during the pandemic, regardless of their income or wealth.

However, those who relied on credit cards to cover emergency expenses and paid them off over time were significantly more likely to report high levels of loneliness.

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“Our study puts a spotlight on the potential dangers of credit card debt and how it can be directly linked to loneliness in older adults,” said Cäzilia Loibl, co-author of the study and professor and chair of consumer sciences at Ohio State’s College of Education and Human Ecology.

While the study couldn’t pinpoint exactly why credit card debt is linked to loneliness, researchers have a possible explanation, according to co-author Madeleine Drost, a research manager at Ohio State’s John Glenn College of Public Affairs.

“We believe that those who have this financial burden are under a lot of stress, and may not feel like it is something they can discuss with their friends and maybe even their family,” Drost said.“It may lead older adults in this situation to isolate themselves and be less likely to interact with their community.”

The findings, recently published in the journal PLOS One, are based on data from 7,149 adults aged 65 and older who took part in the Data Foundation’s COVID Impact Survey, conducted by the University of Chicago’s NORC research organisation.

The study tracked participants through three interviews between April and June 2020, during a period when pandemic lockdowns were in place but had eased by the final survey.

Findings revealed that wealth and higher income offered little protection against loneliness in older adults during the early months of the pandemic. “Loneliness hit people across the economic spectrum,” said co-author Cäzilia Loibl.

However, emergency savings appeared to play a role. When asked how they would cover an unexpected $400 expense, those who said they would need to put it on a credit card and pay over time reported higher levels of loneliness compared to those who could pay immediately.

These findings align with previous research linking credit card debt to financial stress in older adults, and, in turn, financial stress to increased loneliness, according to study co-author Madeleine Drost.

The study also explored how pandemic-related precautions and lifestyle changes impacted loneliness levels among older adults, factoring in their financial status.

Participants were asked whether they followed key safety measures such as handwashing, sanitising, social distancing, and mask-wearing. They also reported whether they had to alter personal plans due to pandemic restrictions.

“Emergency savings, income and wealth did not influence how these actions impacted loneliness,” Drost said. “The COVID-19 pandemic hurt nearly everyone in our sample to some degree.”

Researchers had hoped that easing lockdown restrictions would alleviate loneliness among older adults. Since the study’s final interviews took place after restrictions were lifted, they had the opportunity to measure any potential improvement. But the results told a different story.

“The strong association of loneliness with a lack of emergency funds and COVID-19 measures did not improve for respondents in our sample after lockdowns were lifted,” said co-author Cäzilia Loibl. “It points to longer-lasting implications of loneliness experienced due to limited savings.”

While the study focused on the pandemic, researchers believe its findings remain relevant. Many older adults could benefit from financial and credit counselling—not only for immediate support but also to better prepare for future crises.

“We need to consider our senior citizens during times of crisis, and how these situations will likely increase their loneliness, especially if they have issues like a lack of emergency savings,” Drost said.