Retiring with Edmonton debt can turn your Golden Years into a stressful time as you adjust to life on a fixed income. Spending your retirement money on debt payments and high interest rates can quickly eat away at your retirement savings.
Luckily, there are plenty of easy ways to pay off your Edmonton debt before you retire. Before you make a plan to pay down your debt, it’s helpful to sit down and get a clear picture of your finances. Write down how much you owe, interest rates, and balances on your lines of credit and then decide how you will go about paying them off. Be sure to use your account statements to get accurate figures – estimates won’t do.
A few things you can do to ensure you retire debt-free include:
- Contact your creditors. If you have a history of paying your bills on time and a good relationship with your creditors, consider calling them and asking them to lower your interest rates. This will help you to pay off your bills faster and spend less money on interest.
- Pay more than the minimum amount. Paying just the minimum amount due on your credit cards each month will take you years longer to pay off your cards than if you were to pay just $10 or $20 more each month. In addition, paying them more often can also help you save in interest.
- Get a part-time job. A temporary, part-time job can also help you pay down your debt before you retire. Devote your part-time paychecks exclusively to paying off your debt and you’ll have it paid down in no time.
- Consider a reverse mortgage. If you have significant equity in your home, are over the age of 65, and meet additional requirements, you may want to consider a reverse mortgage. In exchange for the equity when you sell your home or pass away, your lender pays you your monthly mortgage payment. This can provide more money to live off of or pay bills. Be sure to speak with a trusted professional before beginning the process for a reverse mortgage – there’s a lot to consider.
- Delay your retirement. While this may not be the most desirable option, holding off on your retirement for a year or two while you work to aggressively pay off your debts can actually be beneficial in the long run. It will allow you to retire with more peace of mind and extra income.
- Cut back on extras. Until you pay off your debt, cut back on little extras that tend to add up over time. Cable, eating out, and other seemingly harmless expenses each month can eat away at your budget. Cut back on these and put the excess towards paying off your debt.
- Downsize. If just you and your spouse live in a huge house or you own multiple vehicles, consider downsizing to a smaller home. Not only will your mortgage be smaller and easier to pay off, but it will be easier to care for as you age. Multiple vehicles usually aren’t necessary in retirement, either, and the money you save from your vehicle can be used to pay off your debts.
Using your retirement funds to pay off your Edmonton debt can make your retirement years less enjoyable and cause added stress. These tips will help you pay off your debts before you retire.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
