Set a goal to pay down any debt you have well in advance of your retirement years. You do NOT want to be in debt in retirement. Debt balances grow with interest, which makes repayment even more difficult when you have intentionally reduced your working hours. You deserve better than to have interest eating away at your retirement savings! Help yourself take control of your debt and retire on your terms by:
Stop Spending on Credit: If you are struggling to repay your debt in a timely, effective manner, do not put yourself in more debt. Push yourself to put your credit cards aside. Consider adopting a cash spending budget, which is one of the best ways to avoid going into more debt (and one of the best habits you can carry into retirement!). If you need to use a credit card for the sake of a secure, necessary online purchase, make sure you are within your budget and are paying back your purchases on that card in full. Never turn to payday loans, which come with predatory fees and high interest.
Set Goals: Set a realistic repayment timeline for yourself. Aim for regular repayment. Tell your friends and mentors about your goals. They will help hold you accountable! Likewise, if you set up automatic transfers for your debt repayments, you will have taken another major step toward effectively diminishing your debt before retiring.
Repay Using the Snowball Method: Interest is essentially robbing you of funds that could otherwise be going into your retirement savings. For the sake of reducing the sting of interest, focus on paying debt with the highest interest rate first.
Boost Your Income: Additional earnings, even temporarily, can help you get ahead of interest. Many people have also found that increasing their earning power enables them to finally say goodbye to their debts and hello to the next step on their financial journey. This additional income allows them to make real progress with their retirement savings!
Don’t let debt drag down you and your credit score, especially during your retirement years. Retirement is your time. Find more ways to create and achieve your dream retirement at the Syncis Money Blog today.