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Do I have to have no debt in order to retire?

Do I have to have no debt in order to retire?

If you’re thinking about retirement you have to consider several different methods to use the money you have saved in the best way possible.  Since most retirees expect to live on less money every month than they did before they retired, it’s going to be necessary to cut back on the expenses you have now.For a small group of people, this is a fairly easy adjustment.  Some people are fortunate enough to have a pension that replaces most of their income, or savings that they will be able to withdraw from that will equal their old income level.  In these cases, cutting back is as simple as not buying gas to go to work anymore.The majority of people, however, are not nearly as fortunate.  In these cases, their retirement income will only replace a small portion of what they were making before they quit working.  While it may be possible to withdraw more from savings, take Social Security early, or find a part-time job, most people in this situation will have to figure out how to make significant cuts in their budget.Since most retirees don’t dream of spending their golden years scraping by on pennies, many retirement planners suggest that they look at their debt as an easy place to make cuts.  Paying off the house, cars, and credit cards means that the bills for these assets won’t have to be paid each month.  That can free up a lot of cash. If you’ve recently retired and are looking at ways to save money, however, odds are good that you just can’t pay everything off at once.Debt consolidation loans are a good way to solve this problem.  These loans can combine all of your existing debts into a single loan with a low monthly payment.  This monthly payment will fit into your new budget, making it possible for you to live on a smaller amount of monthly income.  If you’re still working, the smaller payment can free up the cash you need to shore up your retirement savings before you quit work.Being able to pay off your debt for less will allow you to actually enjoy your retirement.  Debt consolidation loans can give you a lot of flexibility; if you want to contribute more money later on to get it paid off faster, you can.  Otherwise, just enjoy the freedom that the low monthly payment gives you to travel and pursue hobbies.

About Author: Debt Help Desk

There are tons of sites and articles about getting out of debt. We are different because we are not a site owned or operated by an actual debt relief company. No bias. Our agenda is to help people make smart debt relief decisions- Now let’s help you.

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