Around three out of five retirement-age individuals and couples have debt; the average has soared over $31,000 per household. People often receive lower incomes during this phase of life, making monthly loan payments even more burdensome. So how do you get out of debt before retirement?
The good news is that you can use various methods to avoid this fate. If you have enough income, you may only need to eliminate unnecessary expenses and set aside a more significant portion of the money for repayment. Focus on banishing high-interest credit cards and loans first. If the interest rate is too high or you spend too much time making separate payments to different lenders, consider debt consolidation. This process involves taking out one low-interest loan and using the cash to pay off existing debts. It’s also crucial to avoid creating any new obligations. Think twice if anyone wants you to co-sign a loan. The borrower may fall ill or lose a job and become unable to make the payments. This leaves you with an additional responsibility that could affect retirement.
If you owe far too much money regardless of the interest rate, look for ways to eliminate obligations. You could learn about things like student loan forgiveness and reverse mortgages. Think about selling off any unnecessary assets that you bought on credit. Debt settlement could provide the relief you need. Some lenders are quite willing to accept a portion of the money they’re owed and cancel the remaining balance. They’d rather receive some of the cash than none at all.
If you need to reduce your debt burden or interest rate, we can help. Our experts will guide you to the best solution, giving you a much better chance of enjoying a financially secure retirement. We offer a free 55-minute debt consultation to see how we can help you! For more information, please visit us online here or call us at (636) 223-5900 today!