The sweet dreams of golden retirement days are often stung with the bitterness of debt for a major population of senior citizens. Fixed income and unmanaged credits lead to the high debts in the late retirement age that becomes a challenge to clear. Though the best way of clearing debt is to plan early about the scales of your income vs. due credits, yet at times people react late to alarms; however once one is into the mess of pending debts near retirement age, some best practices can help consolidate and overcome the liability.
- Online tools, debt calculators and planners: It is said that troubles well understood are half overcome. There are many online credit management tools that can help you understand your correct debt values and liability; using the tools you can be informed and so plan as per the real analysis of the debt and available options.
- Hire a Credit Counsellor: One can look for options over internet or even through some peer groups, but it is imperative to ensure the reliability of the service provider. There are many scandalous groups who take advantage of the customer’s old age and make profits at their customer’s loss. One should always try to opt for the known and referred credit counselling service providers to avoid losses.
- Reverse Mortgage: This is one viable option to pay your debts. Reverse Mortgage converts your home equity into cash, which is paid to you on monthly basis. The best feature of Reverse Mortgage is that it not required to be paid back in your life time and gives you a comfortable income flow. While you to continue living in your home and getting paid too, you won’t be able to leave the house to your family or kids. The property is to be sold off only after the demise of borrower to repay the lender.
- Bankruptcy: Many senior citizens find it an ethical obligation to pay their debts, but at times calling oneself Bankrupt helps. But before calling for bankruptcy one should always take assistance from some credit-counselling agency to discuss and decide on the best suitable options. One has to be careful about the fact that most of the credit-counselling agencies are paid by the lenders to get the debts paid off, hence they often discourage on same even when it’s a reasonably available option.
- Safeguard your Retirement Income: Even though you are under debt, be aware that under no circumstance is the creditor rightful to strap you off your retirement wage and savings (pension, Social Security, etc.).
- Keep earning: If your health allows you, it is best to keep looking for options of income, if not full time then part time. A continuous source of income helps to fund your expenses and debt, and also gives you confidence to handle situations intelligently.
The newer generation can sometimes provide new ways of getting out of some sticky financial situations; after all you have supported them through their childhood, now it is time to give them opportunity to pay gratitude.