Retirement means an end to active, full-time employment – not an end to your financial obligations. If you have concerns about still carrying credit card debt during your golden years, here are a few tips for helping you make a significant dent in your credit card balance.
How many items on your bucket list can you afford to accomplish?
If you’re approaching retirement age and, instead of planning yacht purchases and all-inclusive golfing vacations, you’re tallying up your credit card balances and wondering whether Uber will allow you to take time off to periodically sell your plasma, you probably have a fair amount of debt.
Carrying excessive debt into retirement is a common phenomenon. Nearly 70 percent of American households whose head is over the age of 55 have debt obligations. Without a steady stream of income, many retirees discover that their debt load is impossible to manage. Hello, Uber.
Fear not. There are numerous ways to pay down your credit card debt before you’re handed your gold-plated watch. Here are a few fixed-income strategies that could help you manage – or even eliminate – your credit card debt.
- Budget, budget, budget. This is an obvious one, and yet it is still mightily overlooked. Actively sticking to a budget while you’re on a fixed income is crucial to relieving your debt burden. If you don’t know where to start, there are numerous online resources that will help you get your bearings.
- Transfer your credit card balance to a new card. Transferring your balance to a credit card with lower fees could help you significantly. Canadian company Brim Financial, for example, offers extremely competitive rates and numerous benefits for enrollees with great credit.
- Empty nest? Make it pay! Airbnb and other hosting services offer fantastic opportunities to earn extra cash for your guest rooms (or unused children’s bedrooms).
Of course, there are also side-hustles (ahem… Uber) that can help you earn extra scratch, but reigning in your spending, getting credit cards that work for your lifestyle, and discovering previously unexplored revenue streams will help you whittle your debt down to nothing in no time!