Getting Older and Debt
To most of us retirement is when we sit back, relax, travel, and live off the fruits of our years of labor; myself I wanted to be treated like a thoroughbred racehorse and put out to stud, good work if you can get it.
But alas, it is not to be.
Due to the recession and for many people the level of debt they have, retirement has to be postponed or delayed a few or more years.
People either need to continue to work to pay off debts they have or for many of us, the economy has impacted our retirements in a negative way; they have lost money over the years and there is not as much as we had wanted or needed to realize a safe retirement.
There are ways for some people to be able to meet their retirement goals, try to save more, pay off the debts, or if you have property with equity, scale down, buy a less expensive house or use a reverse mortgage; this is where you get money out of the property and still reside there.
It is a strict criterion for these types of loans, but for some, it can be a good thing.
For those that have debts to pay and need to continue their level of wages, if they don’t have property, they could look at some form of insolvency to be relieved of the debts.
Yes, bankruptcy is a harsh money management tool, but it is an option.
If you own property, and it has equity, possibly selling the property and paying off or settling the debts is an option.
I realize most people do not want to sell their homes, but if it clears your debts and you can live easy on your retirement/pension, it is an option.
So regarding debts and retirement, it does come down to a few options: using the property if you have it and it has equity to pay off the debts, continuing working until you can pay off the debts, or consider bankruptcy to be relieved of the debts.
I think many of us would agree, being able to look forward at our retirement without any looming debt(s), is a less stressful, more healthy way to spend our Golden Years.