Across the country, people of all ages struggle with debt.
Though those in their 30s and early 40s are more affected, seniors 60 and up are also struggling.
Common Types of Debt in Retirement
So what kind of debt are seniors juggling in retirement?
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(Right now, theaverage credit card interest rateis more than 20%.)
Unfortunately, 38% of Americans age 60 and above currently carry a credit card balance from month-to-month.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
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Credit cards are an easy (but costly) way to manage rising expenses.
The median monthly mortgage payment in the U.S. is $1,672, based on 2021 Census data.
Thats a large chunk of change for retirees living on a fixed income.
Six percent of senior homeowners also carry debt from ahome equity loan.
Just 31% of people 60 and up say theyre completely debt free.
8 Tips for Paying Off Debt in Retirement
Managing debt in retirement can be stressful.
Here are eight ways to manage and pay off your debt in retirement:
1.
Stop Taking On New Debt
The first step to reducing debt in retirement is to stop acquiring new debt.
Easier said than done, of course, especially wheninflationis eating into your budget.
Instead, sit down with your budget and calculate how much retirement income you receive each month.
Here are some easy things you might do to cut down expenses:
3.
When downsizing to a smaller home, you could sell some of your belongings you no longer need.
The decision to tap into home equity is a serious matter, Trawinski said.
For instance, some retirees may re-enter their industry as a consultant on a contract basis.
Others may turn their arts and crafts into sellable pieces online.
If youre willing to learn something new, you might be able to join the gig economy.
You could drive for Uber or Lyft, become a pet sitter on Rover or try out mystery shopping.
But not everyone may be able to go this route.
A balance transfer typically requires a credit score of 670 or higher, Trawinski advised.
Its also a dangerous strategy: Youve got to take on more debt to get out of debt.
Alternatively, you cansurrenderyour life insurance policy.
(Some life insurance policies may charge a surrender fee.)
What Happens to Debt When You Die?
Debt does not go away when someone dies, Trawinski said.
The estate of the deceased person is responsible for paying the debt … To complicate matters, different types of debt are treated differently.
Hereswhat happens to each bang out of debt when you die.
Contributor Timothy Moore covers banks, loans, taxes, retirement and more for The Penny Hoarder.
His work has appeared in publications such as Forbes, USA Today, Retirement Living and LendEDU.
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Balance Transfer = Credit Card Cheat Code
