GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
Toxic debt is not.
Picture this, said Ant Tumi, debt expert and founder ofLoan For Success.
Its a nightmare scenario that far too many retirees face, but it doesnt have to be your reality.
Dont let high-interest debt steal your golden years.
Prioritize paying it down, create a plan and stay focused on the goal.
If youre cutting expenses for retirement, hereswhy you should prioritize paying down high-interest debt.
The benefits of a debt-free retirement go beyond just dollars and cents, Tumi said.
Its about peace of mind, freedom and the ability to live life on your own terms.
Rhett Stubbendeck, CPCU, founder and CEO ofLeverage Planning, agreed.
High-interest debt can drain your savings quickly, leaving less for the fun stuff, he said.
Debt causes unnecessary stress.
Its hard to relax when youre worried about money.
Clients whove paid off their debt often feel more at peace and enjoy their retirement more fully.
Getting rid of debt makes your finances more stable, Stubbendeck said.
Its easier to handle surprises without debt hanging over you.
This stability means it’s possible for you to keep your retirement savings intact and enjoy your golden years.
Thats not bad unless youre paying 20% interest on expensive loans while your investments struggle to keep up.
Over a 10- to 15-year period, investments tend to trend positive.
Now that money stays in their retirement accounts.
Another client bought a $5 million policy with premium financing but didnt understand the risks.
Retirees are usually on a fixed income or have limited resources, Morgan said.
When living on a pension and/or Social Security, your income only increases based on cost-of-living increases.
This usually does not keep up with inflation.
This means your spending power goes down every year.
While thats happening, your earning potential also dwindles with age, leaving you with fewer options for coping.
As you get older, usually getting a part-time job oradditional supplemental incomegets hard, Morgan said.
So if you are retired and are healthy, working part-time may be a possibility.
So paying off debt while you still have some options is best.
More From GOBankingRates
Share This Article:
