Debt and Debt Management News, Information and Guidance

Debt Free Retirement! 7 Reasons To Pay Off Every Penny Before You Retire

You’re 70 years old. You shuffle out to your mailbox on a crisp Monday morning and you are not at all surprised by what’s inside: junk mail and bills. “You’ve been pre-approved for this credit card.” — garbage “I’ll do great things for your city. Vote for me!” — garbage “It’s that time of month….

Average Retirement Debt: 13 Tips to Prevent it From Taking a Big Bite Out of Your Future Finances!

One of the greatest threats to retirement today may not be saving too little, but owing too much. A 2016 survey by the Center for a Secure Retirement found that Boomers (Americans born between 1946 and 1964), are carrying a significant amount of debt into retirement. Will retirement debt take a big bite our of…

Paying Off Debt

Paying Off Debt? First Celebrate then Do THIS!

Whether it is a credit card, car loan or the holy grail of all debts — your mortgage, paying off debt and eliminating monthly payments is a really big deal.When you pay off a debt, it is a huge opportunity to rethink your financial situation.  Your cashflow will have suddenly improved.  What are you going…

rising interest rates

How to Prepare Your Retirement Plans for Rising Interest Rates in 2017

Most experts agree that we will see rising interest rates in 2017.  Interest rates impact our lives in a wide variety of ways — especially financial. Why Will Interest Rates Rise? Since 2008, interest rates have been at historic lows, below 1 percent. Traditionally, rates have been much much higher — ranging from 16.39 percent…

What happens to your debt when you die

What Happens to Your Debt When You Die? If You Run Out of Money, Are Heirs Responsible for the Bills?

A lot of retirees will run through their savings before they die.  And then what?  What happens to your debt when you die?  Will your debts wipe out the assets you’d hoped to leave for your heirs? Will your family members be on the hook for your debt? The short answer is, it depends on…

credit score

Does Your Credit Score Matter in Retirement?

Whether you’re living the dream of a debt-free retirement or you’re still working towards paying off debt, there are some pretty compelling reasons to continue caring about your credit score after retirement. In a perfect world, everyone would enter retirement with a paid-off mortgage, zero debt, and a nest egg large enough to ensure they…

Eliminating debt

Expert Interview Series: Steph Halligan About Eliminating Debt While Saving For (or in Preparation of) Retirement

Do you want to eliminate debt and save for retirement? It’s not impossible. In today’s world, it can be easy to feel rushed, overwhelmed, and spread thin. But don’t let that stop you from meeting your goals. If you want to be debt free, it will require some discipline and sacrifice; but eventually, it will…

Retirement savings

Expert Interview with JoAnneh Nagler Of The Debt Free Spending Plan About Retirement Savings and Supporting In-debt Children During Retirement

“The principle of living debt-free is not about being good money-citizens for the sake of it. It’s not about getting a gold star. It’s about getting clarity with our money so that we can fund more of what we want, not less. I like to say, ‘It’s about creativity, not credit cards.’” This is a…

Retirees

Expert Interview with J. Douglas Hoyes About Retirees Living Debt-Free

We asked J. Douglas Hoyes, bankruptcy trustee, founder of Hoyes, Michalos & Associates, and advisor for MoneyProblems.ca, how big of a problem debt was for individuals today. He said the answer really depended on your perception. While the average Canadian now owes $1.62 in debt for every after-tax dollar they earn (a number that keeps…

Money management

Expert Interview with Lauralynn Schueckler About Credit Counseling

Working with a credit counselor is something people of all ages can benefit from. These trained professionals help individuals reduce debt, save more, and reach financial goals. Lauralynn Schueckler of Advantage Credit Counseling Service understands that money worries are a common occurrence in individuals just starting out and in retirees, but she knows that credit…

How to Get Out of Debt? The Financial Gurus Answer

Retirement planning is a lot easier with the weight of debt off your shoulders. Some debt is almost unavoidable, but that doesn’t mean you can’t clear it away, and smooth your path forward. All it takes is a plan, and the stick-to-itiveness to see it through. If you’re trying to hone in on the best…

Retiring With Debt is a Bad Idea; 6 Ways to Have a Debt Free Retirement

If you are a typical American approaching retirement, chances are you’re carrying some form of debt. In fact, the average person age 65 or older typically carries $9,300 on their cards, according to a study by national research organization Demos. But retiring with debt can be “detrimental” to retirement planning, says credit counselor Thomas Nitzsche,…

Retirements Swallowed by Debt

The New York Times, January 26th, 2011 Bill Freedman, 86, felt financially secure. He had a comfortable income from Social Security, an I.R.A., investments and an inheritance. But when he took a fall last October, his daughter, Nancy Freedman, went to his Manhattan apartment and found several credit cards piled up in a desk drawer….

SMART MONEY: No need to file, they already are bankrupt

The Oakland Press, January 27th, 2011 DEAR BRUCE: My parents, both 80, have lived for years on their credit card, running up the balance and paying it off every month. This works great when you have ample income to cover it. For whatever reasons, they have no investment income left and are living on retirement…

Credit Card Debt: Not a Concern for Retirees in Bad Economy

Third Age, November 29th, 2010 Editor’s Note:  We urge you to read this one with a large grain of salt.  Though we are including it because it’s a new concept that is certainly outside the box thinking, we at NewRetirement wish to stress the extreme danger that credit card debt can pose to your retirement. …

In Greek Debt Crisis, Some See Parallels to U.S.

The New York Times, May 11th, 2010 It’s easy to look at the protesters and the politicians in Greece — and at the other European countries with huge debts — and wonder why they don’t get it. They have been enjoying more generous government benefits than they can afford. No mass rally and no bailout…

Retiring free and clear of mortgage debt

Bankrate.com, April 30th, 2010 Should you continue to make mortgage payments after you retire? Or should you pay off the house before quitting your job for good? Financial experts are divided on this issue. Reasons you may not pay it off Bankrate’s own Dr. Don says it makes sense to compare the after-tax return on…

4 ways to tackle massive credit card debt

Bankrate.com, March 30th, 2010 Dear Debt Adviser, My husband had to take an early retirement for medical reasons. We owe about $50,000 in credit card debt. We can pay our house, utility, car and living expenses, but we have very little left for paying the credit cards. We don’t want to file for bankruptcy but…

3 ways to shed credit card debt in old age

Bankrate.com, January 13th, 2009 Dear Debt Adviser, My parents are 88 years old and 86 years old. They are physically and mentally fragile, but still living in their home with the assistance of home aides provided by Medicare. My mother had a credit card that she maxed out at $20,000, which my father is struggling…

From the right source, reverse mortgages can save seniors’ finances

Belleville News Democrat – January 11, 2010 It’s foolish at a certain age to make New Year’s resolutions. We’ve been there and done that, which is how we got to be our age. Besides, you don’t need a resolution to be good to yourself in this new year, this new decade. It’s bound to be…

Five ways to make your nest egg last a lifetime

Marketwatch, September 17th, 2009 Back in the good old days, before the crisis of 2008-09, many experts suggested that all you needed to do was withdraw 4% per year, adjusted for inflation, from your nest egg. That strategy, experts said, was a near guarantee that your nest egg would last a lifetime. Well, go tell…

The Greenback Effect

The New York Times, August 18th, 2009 In nature, every action has consequences, a phenomenon called the butterfly effect. These consequences, moreover, are not necessarily proportional. For example, doubling the carbon dioxide we belch into the atmosphere may far more than double the subsequent problems for society. Realizing this, the world properly worries about greenhouse…

America’s Sea of Red Ink Was Years in the Making

The New York Times, June 9th, 2009 There are two basic truths about the enormous deficits that the federal government will run in the coming years. The first is that President Obama’s agenda, ambitious as it may be, is responsible for only a sliver of the deficits, despite what many of his Republican critics are…

When credit card debt ruins retirement

CreditCards.com – March 2, 2009 Are Social Security and private pensions exempt from garnishment? Dear Credit Guy,I have recently retired and have only my Social Security and a private pension. If I quit paying my credit cards, can my Social Security and private pension be garnished? I live in Arkansas and have a homestead that…

Credit card perks to enhance retirement savings

Chicago Tribune – January 18, 2009 Typically, credit cards aren’t the first things that leap to mind when you think about retirement.But many people saving for retirement are cutting back on contributions to their accounts these days. And many retired Americans are carrying more credit card debt than they’d like.So which are the best cards…