Debt Consolidation Raises Gen-X Retirement Hopes

Jeanne McTaggartDebt Consolidation

Having too much credit card debt when you are younger can haunt you when you retire. Not only do you have less money to contribute to a retirement account when you are paying on high-interest credit cards, but you could carry debt into retirement. With debt consolidation at any age, you get out of debt in less time so you can enjoy retirement. According to a recent article by Fox Business, member of Generation X in their late 30s and 40s are more hopeless about retirement than baby boomers in their 50s and 60s. A study by Allianz Life Insurance Company of North America found 8 in 10 people in both generations think it’s unrealistic that they will be doing what they want at age 65. Some experts consider Generation X the next generation that will enter retirement following the baby boomers. Many members of that generation have excessive credit card debt.

Dealing with the aftermath of the Recession

During the Great Recession, a lot of people turned to credit cards to pay for basic necessities. Some people who later found jobs had to take part-time jobs without benefits or endured several pay cuts. By receiving credit counseling and signing up for a debt management plan, you can finally get the edge you need to overcome credit card debt accumulated during the recession. A credit counselor talks to your creditors to achieve a lower interest rate for you. The Allianz Life Generations Apart study found the crash of 2008 did affect the attitude of Gen Xers, but it is not hopeless for them.

Stop using Credit Cards as Survival Tools

Experts say Gen Xers began using credit cards as survival tools. With debt counseling, you not only learn about debt consolidation but how to budget and survive without a credit card. As you pay off your debt with a monthly debt management plan, you also put money aside for emergencies and financial goals. People who have $10,000 to $50,000 socked away in a savings account don’t have to rely on credit cards.

Save at least 15% for Retirement

If you are a Gen Xer, start saving at least 15 percent of your income for retirement if your budget allows. A credit counselor will help you figure out how you will pay off your credit card debt while saving for retirement. Some people receive a saver’s tax credit from the IRS, while others receive a company match to a 401(k). Consider your specific financial situation when planning for your retirement.

According to Fox Business, Gen Xers should avoid accumulating any new credit card debt while they work hard to save. To get back on track for a more secure financial future, talk to the credit counselors at Christian Credit Counselors. We help baby boomers, Gen Xers and others get out of debt with a solid debt management plan.

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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