Managing debt during your retirement looks different than when you are working full-time. While many retirees don’t have the same type of debt, such as student loans or mortgage, other forms of debt often take their place. For instance, medical bills may increase as we age, and loans such as auto or credit cards can also credit a problem when trying to pay your bills. Our Debt Management Service is designed for retired individuals and their families who are struggling with how to replacing high-interest debt with low-interest loans, which can help reduce costly finance charges. We work closely with you to create a strategy that works with your lifestyle. The program helps you track expenses each month—and identify areas where you can cut back and save.
Debt Management During Retirement
Setting up automatic systems for monthly payments can challenge your budget and make it difficult to stay on track. And, high interest rates and lengthy repayment terms can make it impossible to wipe out debt quickly. Do these types of challenges have you worried about your financial well-being? If so, you’re not alone. The average debt per U.S. household is more than $135K.
|Average debt per U.S. household||Total debt by all U.S. consumers|
|Credit cards (revolving)**||$6,929||$420.22 billion|
|Auto loans||$28,033||$1.27 trillion|
|Student loans||$47,671||$1.44 trillion|
|Any type of debt*||$135,768||$13.51 trillion|
If you fall into any of these categories, don’t be discouraged. It is possible to regain confidence in your financial future. The first step is to create a plan that will help you payoff debt, swap high-interest debt for lower-cost loans—especially credit cards—and focus on paying down these accounts to get ahead of the debt curve.