Have you ever had the exhilarating feeling of sending in the last payment on something you purchased ?
Feels wonderful !!!!
Handling debt when you are still working is normally manageable. After retirement, things change. Automatically the ratio of debt to income increases.
Even before retirement debt can be a problem. With the idea that you can handle the payment. Then income shrinks and you have a problem. After retirement, it’s radically different. Your not working. May not be able to get a job to handle the mounting bills. And then add the stress of knowing your being buried in debt.
Debt to retirees is like being handed an anchor when you are drowning. You will have other bills such as medications and other expenses that come along, that you can’t handle.
As your debt increases, it’s like being forced into a corner with less and less room to move.
Then if something happens you have no where to go. I have seen it many time and it’s not pleasant.
Facing Credit Card interest rates up to 29,95%,,, It may seem like you may never get them paid off. Bankruptcy is an option, but the worst one. That will limit your ability to ever get credit again for years into the future.
The best way to handle this debt problem is to avoid it in the first place. Were that the case, you would probably not be reading this.
In order to get yourself out of the debt situation, it will take some major changes in your lifestyle. Cutting back on your expenses is the first step. Look at your bank statement and card statements to find where you are spending the money. WRITE THEM DOWN !
Seeing them written down in front of you is often a very sobering experience. What can you cut back on ?
Once you have done that, write down ALL of your Credit Card and other debts and the current interest rates. Another eye opener. How much do you now owe and to whom ? Some call this the ” Come to Jesus moment”. It’s all there in black and white to see. Very often it’s more than you think.
On paper write down your monthly incomes. Your monthly expenses, and compare them
Debt Recovery –
Like an addiction or losing a lot of weight- it’s not going to be enjoyable. But it has to be done.
Start with the lowest debt first and get it paid off.
When the first one is paid off, If it’s a credit card, preferably cut it up. Or at least put it in the freezer – or some obscure place. What happens is that you may have to search for it and stop to re-think the need before using it.
Now that 1st one being paid off gives you that amount of money to apply to the next bill on your list,
Can you sell some of the things you purchased ?
What else can you do to bring in some extra money ?
When you do have extra money, it doesn’t mean to go out and buy more.
Your self discipline will be tested.
You can get out of debt…. but it will take time.
Debt Consulting –
Some lender and communities have access to debt counselors. This may be an option.
Refinancing the home is popular on TV now. That is a last resort action.