Financial planning tools and services to put you on the path to the future you want
Your guide to financial planning and retirement
Connect with peers and experts
Get to know the people behind the company and the mission behind the work
Offer financial wellness to the people at the heart of your business
Learn about good debt and bad debt and find out how to optimize your debt situation.
Debt is not always a bad thing when it comes to personal finance and financial wellness. Debt is commonly used by corporations and individuals to make large purchases that would otherwise be unaffordable (like houses and cars). Debt can be a good financial decision if the thing you are purchasing gives you utility and will maintain value of over time (like houses and cars).
The definition of debt is that you have borrowed something with the condition that it is to be paid back, usually with specific terms. The terms of a loan may include the term (time period for repaying the loan) and interest. Interest is usually defined as a percentage of the loan amount that the borrower will pay on top of repaying the balance or borrowed amount.
Interest is charged so that the lender is compensated for the opportunity costs of not having access to the money themselves and for taking on the risk of the loan.
There are different kinds of debt: secured, unsecured, revolving and mortgage. Interest is is something, usually money, borrowed by one party from another. Debt is used by many corporations and individuals to make large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.
In 2020, Fidelity reported that the majority of people who were making financial resolutions for the new year wanted to achieve a debt free life. While fortunes have shifted after the pandemic, it is still a very worthy goal. Not sure how to get out of debt? You have options. Based on my experience, there…
One of the greatest threats to retirement today may not be saving too little, but owing too much. According to the Federal Reserve Bank, Boomers (Americans born between 1946 and 1964), are carrying ballooning amounts of debt into retirement.Will your debt take a big bite our of your retirement? For many people, that debt is…
What happens to your debt when you die? It’s possible that an individual can have so much debt after they die that it will wipe out the assets that they’d hoped to leave for their heirs. In some situations, family members may be on the hook for their deceased relative’s debt.However, this all depends on…
If you are a typical American approaching retirement, chances are you’re carrying some form of debt. In fact, the median debt per American household is $2,300, while the average debt stands at $5,700, according to a study by Lending Tree. But retiring with debt can be detrimental to retirement planning, says credit counselor Thomas Nitzsche,…
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…
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.…
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 in 1981 to a low of 3.02 percent in 1993. The low…
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…
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…
“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…
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…
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…
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…
Take financial wellness into your own hands and do it yourself retirement planning: easy,
Our weekly newsletter full of inspiration, podcasts, trends and news.
© 2023 NewRetirement, Inc. All rights reserved.
Disclaimer: The content, calculators, and tools on NewRetirement.com are for informational and educational purposes
only and are not investment advice. They apply financial concepts in a general manner and include
hypotheticals based on information you provide. For retirement planning, you should consider other
assets, income, and investments such as equity in a home or savings accounts in addition to your
retirement savings in an IRA or qualified plan such as a 401(k). Among other things, NewRetirement
provides you with a way to estimate your future retirement income needs and assess the impact of
different scenarios on retirement income. NewRetirement Planner and PlannerPlus are tools that
individuals can use on their own behalf to help think through their future plans, but should not be
acted upon as a complete financial plan. We strongly recommend that you seek the advice of a financial
services professional who has a fiduciary relationship with you before making any type of investment or
significant financial decision. NewRetirement strives to keep its information and tools accurate and up
to date. The information presented is based on objective analysis, but it may not be the same that you
find on a particular financial institution, service provider or specific product's site. All content,
tools, financial products, calculations, estimates, forecasts, comparison shopping products and services
are presented without warranty.