How a Debt Consolidation Loan let Me retire early
<p data-sp-element=”content”>Alice and Michael Johns had worked hard for years; she as a public school teacher and he as a landscape architect. They raised two children and helped both of them go to college. They assumed that they would retire with Alice’s pension and Michael’s 401(k) for income. Then, Michael came home from work one day when he was 56 with the news that his company was closing his division and letting everyone go.So close to the end of his career, Michael tried to find a new job, but didn’t have much success. Most companies would quickly end the interview when they realized how old he was. Meanwhile, they couldn’t pay all of their bills with Michael out of work, and he was too young to access his retirement accounts or Social Security.Fortunately, the Johns’ were able to find a solution with a debt consolidation loan. This loan paid off all of their existing debt, including their credit cards, car loans, and the HELOC they took out to pay for their kids’ college education. By combining the debt together into one loan with a low interest rate and stretching out the payments, the Johns’ were able to pay less than half of what they used to pay.Reducing their monthly payments meant that Alice and Michael were able to pay all of their bills every month, even though Michael wasn’t working. Their debt counselor worked with them to come up with a plan that allows them to live on Alice’s salary until Michael is able to access his retirement plan without paying a penalty. At that point, they’ll pay off the remaining balance on the debt consolidation loan and enter their retirement years with no debt. In the meantime, knowing that they can their bills has been a huge relief to Alice and Michael. Michael was able to find consulting work with some of his former clients, and he’s now able to set his own schedule while earning income. Since they don’t need that money to pay bills, Alice and Michael use his salary to build up their savings. Instead of retiring at 65, they now both plan to quit working at age 59 when they’ll be out of debt.