Debt Counseling, Credit Card Debt, and Retirement

Jeanne McTaggartDebt

Debt Counseling

Some seniors use credit cards as a way to fund their travels in retirement, while others use them just to get their basics needs met. By receiving debt counseling you can prevent the senior credit card trap in the future. Young people who talk to trained credit counselors often learn the basic personal finance rules that help them save for retirement. According to a recent article by thestreet.com, many members of Generation X and the baby boomer generation worry about a cloudy financial future due to credit card debt. Even if you are under the age of 40, you can adopt better savings habits now as well as eliminate debt with a debt consolidation approach.

Changing your view of Money

Experts say one reason credit card debt will darken retirement for many senior is the fact that people no longer view debt as “abnormal.” By accepting massive credit card debt as perfectly normal, you reduce the odds of living a debt-free life. Successful savers pay off their credit card balance each month while simultaneously putting money aside for the future. They don’t pay interest because they have money in savings to pay any unexpected charges. A certified credit counselor helps you crunch the numbers so you can also build up a financial cushion.

Feeling embarrassed about Debt

When you receive Christian credit counseling, no one will shame you for your financial situation. In fact, most people open to debt counseling experience a total release of embarrassment and shame attached to failure because they are making a bold move toward success. Experts say the stigma of being in debt no longer exists with half of the people older than age 40 saying credit cards are survival tools.

Escaping the Downward Spiral

When you have a lot of credit card debt, it quickly impacts your future. Someone who has $20,000 saved up for retirement can’t get ahead when they can’t pay off high interest rate credit cards. Instead of giving up, the positive solution is to consolidate debt at a lower interest rate. By the time you enter retirement, you could have zero credit card debt and tens of thousands saved in a 401(k) or Roth IRA.

If you are afraid of credit card debt in retirement, consider debt counseling. A debt management plan lets you avoid bankruptcy. Some seniors fall prey to predatory debt settlement scams and programs that promise you will be debt free tomorrow. With some hard word, education, budgeting, planning, saving and paying on a debt management plan, you can enjoy a brighter retirement. By the time you retire, your personal finances will be a blessing instead of a curse.

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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