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We hear about how the Baby Boomers are the wealthiest generation, yet we struggle to fund a retirement, so we end up working the rest of our lives in many cases. Compounding matters is the crushing debt that many Boomers face in what are supposed to be the stress-free years of retirement. With this reality in mind, what are some ways to attack the debt problem? @A Financial Site For Sore Eyes & Inquisitive Minds
Below are 5 strategies to conquer debt when you are 60:@Your Finances
Do your homework to compare interest rates being charged.
If you are refinancing student debt keep in mind you will give up some of the perks for federal loans such as repayment plans based on income as well as debt forgiveness programs.
- Call your credit card company or lender and ask them how you can apply extra payments to the
- Check with your lender and see if your extra payments will go toward interest or
principle[principal]. Some will apply your extra payment to interest which doesn’t help pay down the debt. You want to have that extra payment pay down the principle[principal].
- Check that you are not being charged for making extra
principle[principal] payments. You may be able to avoid the fees by tacking the extra payment onto your monthly payment.
Everyone has a reason for accumulating debt. Sometimes it is due to poor budgeting habits while others can’t avoid it due to employment or other family circumstances. Regardless of the reason it doesn’t have to wreck your retirement. Be intentional, have a plan and work your plan each month. Before you know it, you will have made a big dent in your debt and then it will be gone.
Once you are debt free you can enjoy your retirement savings and live your retirement on your terms.