Baby Boomers, Debt Counseling, and Retirement

Jeanne McTaggartBudgeting, Debt

Debt Counseling

When Baby Boomers Budget

If you are a baby boomer in your 50 or 60s, you are likely wondering if you will ever experience retirement bliss. A growing number of boomers have massive credit card debt in addition to mortgage and student loan debt due. In some cases, boomers take out mortgage and student loan debt to help children and grandchildren. With debt counseling, you can find out how to balance your desire for a debt free life and continue to show your generous spirit by helping loved ones.

According to a recent article by pressherald.com, financial advisers recommend baby boomers concentrate on their credit card debt before retiring. Retirees live on a fixed income, whether the money comes from Social Security benefits, dividends from investments, Roth IRA or employer-sponsored retirement accounts and pensions. If you have lived with credit card debt your entire working life, consider following a debt management plan so you can live free of credit card debt in retirement.

Budgeting for Household Expenses

Before you pay off your mortgage or pay it down, talk to a certified credit counselor. You could be better off devoting your money to a debt repayment plan. When you consolidate credit card debt, you often pay a lower interest rate. Still, mortgage rates have been extremely low in recent years. You will most likely come out ahead by allocating money for credit card debt before paying down a mortgage. With debt counseling, you learn to budget for housing whether you own or rent.

According to research by the Consumer Financial Protection Bureau, the median senior citizen mortgage debt is up by 82 percent. If you are an average baby boomer, you could owe as much as $79,000 in mortgage debt. After you get out of credit card debt, you can think about strategies for paying off a mortgage early.

Clearing away the Debt

Experts say members of the Greatest Generation were much less likely to retire with debt. When it comes to credit card debt, set a goal to be debt free by the time you claim your Social Security benefits. If you can finish a Debt Management Plan by age 62, treat yourself to an early retirement.

When you have credit card debt, it is difficult to pay for variable expenses in retirement such as travel, vacations and gifts. A credit counselor will help you figure out how long it will take to be completely debt free so you can tweak your retirement age. Don’t be afraid to delay retirement if it means entering your golden years with more gold in your pockets and less debt.

At Christian Credit Counselors, we specialize in credit card debt. You can pay off your debt 80 percent faster with our approach to debt management. Our team helps you lower your interest rate and enjoy the benefits of debt consolidation through one easy monthly payment.

Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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