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While some debt can be strategic, others can significantly impact yourretirementyears in ways you might not expect.
Also see things Gen Zers can do to deal with debt.
This refers to the opportunity cost of prioritizing debt repayment over saving for retirement.
Essentially, you should start retirement savings as early as possible, even while managing debt.
ONeill illustrated this with a stark example.
If the biweekly savings is $200 instead, the account would grow to $862,979.
This means that their monthly payments are higher and they have less money to save, ONeill said.
This delay can affect retirement plans, as home equity is often a significant source of retirement wealth.
He said debt in the early phase can significantly impact the middle and retirement phases.
Households smooth consumption relative to income by using debt and credit.
That is, income has more volatility than consumption, Miller said.
Debt doesnt have to be a burden, he said.
It can be a powerful wealth-building tool if used right.
Strategies To Mitigate the Impact
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