Thinking About Retiring with Debt? How to Retire and Still Pay Off Your Debt

Are you approaching retirement age but are still carrying debt? Whether it is credit card debt, personal loans, or any other type of debt, it can be daunting to imagine leaving the workforce while still owing so much money. Retirement should be a time for relaxation and less stress, not one for worrying about bills, so eliminating debt before retirement is a key to your happy golden years.

For some, however, retiring without debt is not possible. The good news is that it is still possible to pay off debt even after retirement. Here, we discuss a few strategies to do just that.

Consider Working for a Few More Years Before Retiring.

If you are not already retired, the best way to pay down your debt is to consider working for a few more years past when you had imagined retiring.

First, by extending your earning years, you will have more income to aggressively put toward paying down your debt, pre-retirement.

Second, the later you retire, the more likely you will be able to take full advantage of your Social Security benefits. Talk to your financial advisor, but at what age you claim Social Security benefits determines how much you will ultimately receive, and therefore how much money you will have during retirement to pay down your debt.

Finally, cut your living expenses down while you are still working for the last few years. Even if you end up retiring with debt, at least you will not be adding to the amount you owe as you get closer to retirement. If you do end up with debt in retirement, read on for advice on how you can still pay it off.

Already Retired and Carrying Debt? Steps to Pay It Off

There are still many ways to manage debt, even when you are retired. There are also resources you can tap into for advice. Whether it is a financial advisor or a debt relief company like CountryWide Debt Relief, know that you are not alone in your journey and that help is out there.

Step 1: Pay Off the Debt with the Highest Interest Rate First

If you have more than one type of debt or more than one credit card, it would be wise to come up with a plan of paying down your debt strategically. Instead of putting whatever you can toward each debt or paying an equal amount on each debt every month, tackle your debts by paying your minimum payments on everything, but aggressively paying down the principle of the debt with the highest interest rate first.

For example, if you have three credit cards with interest rates of 24%, 18%, and 14%, every

month you should continue to pay the minimum payments on each card, but anything extra you have should go toward paying down the card with the 24% interest rate first. Once that card is completely paid off, move on to the 18% card until that is paid off, and so on. Before you know it, your debt should be eliminated, with the least amount of your hard-earned money going toward interest payments.

Step 2: Get a Job

There is no better way of paying off debt than increasing your income and putting all of that income toward your debt. While not something many retirees traditionally think of, getting a job during retirement is entirely possible and is quite popular. It can be in the field you retired from, perhaps in a more limited or part-time capacity, but often post-retirement jobs are in entirely different lines of work.

Some retirees find it refreshing to get back out in the job market after a break. Not only will you get the chance to meet new people, learn new skills, and learn from a younger generation, but you will bring in the extra income you probably did not plan on earning when you initially retired.

By putting all of that excess income toward your debt, you will likely be on your way to paying it off in full.

Step 3: Work with a Debt Relief Company – Start by Reaching Out to cwdebtrelief.com

If getting a job or otherwise increasing your income is just not in the cards for you, you are not out of options. Here are just two of the many ways a debt relief company can assist you with paying off debt during retirement:

Debt Settlement: If you can no longer pay your credit card bills, debt settlement might be a good option for you. With debt settlement, you stop making payments on all debt and a debt settlement company negotiates with your creditors, on your behalf, to accept a lower lump-sum for all of your debts. During the process, while you save for the ultimate payment to your creditors, the debt settlement company will hold your payments in escrow until you have enough saved to settle your debts. At the end of the process, your debt will be down to zero and you will be free to live in retirement without those payments hanging over your head.

Debt Consolidation Loan: A debt relief company can also work with you to secure a debt consolidation loan. If you have multiple bills with high-interest rates (such as most credit cards) you might be a candidate for a low-interest debt consolidation loan. With a debt consolidation loan, you use the money from the loan to pay off those high-interest debts and focus on paying one, lower-interest, monthly payment on the loan. This is an effective strategy for those who do have the means to pay off the full amount of their debt but are struggling to meet their payments because so much goes toward interest payments every month.

A Debt-Free Retirement is Possible for Anyone

No matter your current financial situation, a debt-free retirement is possible for you, too. Do not be afraid to reach out to others and ask for help. There are resources available, such as debt relief companies, and ways to pay down your debt and you are never alone on this journey.

One thought on “Thinking About Retiring with Debt? How to Retire and Still Pay Off Your Debt

  • February 14, 2022 at 8:31 PM
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    The co-owner of Country Wide, Josh Blandi, is not looking out for you. CountryWide Debt Reelief owns a reputation business called Unicourt. Unicourt blasts your public records all over the internet & no telling what else. I cannot find a job due to a labor claim/court record with my old employer that was settled out of court. Unicourt is blasting my name & now nobody will hire me. It’s a violation of my equal opportunity & digital online protection act. They are out to hurt you; not help you. They are advertising my name on the internet as association with their company so they can make money. I have a moral & ethical conflict with this company. They are not licensed under CFPB as required by law. I am filing a complaint with CA attorney general.

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