In our current low-interest rate environment, mortgages and many car loans can be very manageable. It’s hard to reach any financial goals, such as a down payment on a home, putting a kid through college, or even buying a nice new car, if you’re saddled with debt. To keep your mortgage as affordable as possible, start by applying only once your credit score is high enough to secure a decent rate. Once you’re retired and living on a fixed income, each individual dollar you have will count even more.
Key Takeaways:
- It stands to reason that entering into retirement with active debt makes paying that debt off all the harder.
- If retirement is coming towards you at a fast pace, it would be wise to prioritize high interest debt as those you wish to pay off first.
- By this logic, high-interest credit and retail cards should be paid down and eliminated before mortgage loans.
“Similarly, if you have artwork or electronics you don’t have a need for, unloading them might allow you to pay down a chunk of debt, thereby lowering your ensuing monthly payments and limiting the extent to which you continue racking up interest.”
Read more: https://www.fool.com/retirement/2018/06/28/retiring-with-debt-heres-how-to-manage-it.aspx
Leave a Reply