Retirement is supposed to be a time of rest and relaxation. But if you’re still dealing with debt, it can be a major source of stress. That’s why it’s important to get your debt under control before you retire. How? If you’re not sure where to start, don’t worry – we’ve got you covered! Read on for tips on how to manage your debt so you can enjoy a stress-free retirement.
One of the most important things you can do to get your debt under control before retirement is to create a budget. A budget will help you track your spending and ensure that you are putting enough money towards your debts each month. To create a budget, start by listing out all of your sources of income. Then, list out all of your debts and expenses. Make sure to include both fixed expenses, like your mortgage or car payment, and variable expenses, like groceries or entertainment. Once you have a good understanding of where your money is going each month, you can start making adjustments to ensure that you are putting enough towards debt repayment.
If you have multiple debts, consolidating your debts often speeds up repayment. A consolidation loan is a single loan that pays off these multiple debts. Atlantic Signature can help with debt consolidation if you have enough equity in your home. This can be helpful if your debts have different interest rates — by having one loan, you can save money on interest and make it easier to keep track of your payments. There are a number of different ways to consolidate debt, so it’s important to speak with a financial advisor to find the best option for your situation. You can also seek the assistance of a mortgage broker when looking at using your home’s equity, as a broker would be best suited to help navigate the transaction. When you have home equity, private lending options such as Atlantic Signature can often be more flexible when it comes to loan terms and conditions, plus we work with borrowers to create a loan that meets their individual needs.
As you look at your loans, don’t forget about any you might have co-signed over the years (like student loans for your grandkids, for example)!
If you are thinking about downsizing or relocating, it’s important to plan ahead, as mortgage criteria from traditional lenders have changed over the years. If there’s a possibility you may not qualify for a traditional mortgage, private lending might be a solution for you as you focus on paying down high-interest debt before you stop working. Not all private lenders are created equal – don’t just look at interest rates, terms are also very important as you compare offers.
Retirement is an exciting time, but it’s important to make sure you are prepared financially before making the transition. One of the key things you need to do is get your debt under control. Creating a budget and consolidating your debts are two great ways to do that. Seeking help from a financial advisor or a private lender can also be beneficial to ensure you evaluate all your options. By taking these steps now, you can ensure that you enjoy a stress-free retirement down the road.