I wanted to touch on a way to cope with debt. From credit card debt to student loans and mortgages, every generation is impacted. Americans over the age of 50 hold 22% of all student loan debt — up from only 10% in 2004. Especially during times of economic uncertainty, managing your debt should be a top priority. The clients I see having debt issues heading into retirement realize to have the best chance at the retirement they want and deserve, they must limit debt. When tackling debt, there are two popular methods: The avalanche method encourages you to organize your debts by interest rate. You’ll start by tackling the debt with the highest interest rate first. Once that debt is paid off, you’ll move to the next highest interest rate. The snowball method encourages you to organize your debts by the amount you owe. You’ll pay off the debt with the smallest balance first, before moving on to your next smallest balance. With each method, continue making at least the minimum payments on your other debts as you work to pay it all off. And I have encouraged clients to keep working a little longer, to pay down debt before they retire, that’s how important budgeting for debt needs to be. If you need some direction on this call for an appointment, 855-22money or go to yoursafemoneyshow.com.
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