7 tips for managing debt in retirement
The feeling of being in debt after retirement can be terrible. The good news is that there are plenty of ways to get out of it. We’ve put together seven expert tips for getting out of debt in retirement so you can free yourself from the financial equivalent of quicksand.
1. Notice the signs
The best way to manage debt is by not getting into it in the first place. Make sure you check your bank account regularly and keep track of your smaller weekly expenses as well as your broader monthly and quarterly expenses. Make sure you have enough money coming in to meet these commitments. If you don’t, then there’s every chance you could find yourself in debt soon.
2. Don’t panic
If you’ve found yourself in debt, the most important thing to do is not panic. Any financial moves made under stress or duress tend to not address the situation properly. Addressing the situation calmly is the best way to figure out the source of the problem and from there make moves to find a solution. Avoid quick fixes and temporary solutions as these generally fail to get you out of debt.
3. Talk to your family
People can get very sensitive about their money, and finding yourself in debt can feel like a very lonely position. But that doesn’t mean you have to keep the problem to yourself, even if you’re feeling embarrassed about the situation. Over the long-term the healthiest thing you can do is inform your family of your financial troubles and they can help you get out of financial strife.
4. Make a plan
As with anything else in life, when you’re managing debt the most effective way to address the situation is by making a plan. You may have bills to pay but you still have to keep the other aspects of your life moving so make sure you know how much money you’re working with and how much you owe. Setting goals and deadlines is a great way to motivate yourself to save.
5. Don’t be afraid to put yourself first
Little things can make a big difference in terms of making debt feel less overwhelming. You’ve probably got a range of expenses that you have to make to other people but feel free to set some of this money aside to address your own debt problem. Every now and then it’s okay to put yourself first particularly when you’re trying to manage your own personal debt problems.
6. Talk to your creditors
Your creditors are going to want their money, but a little bit of cooperation goes a long way even when you’re talking about debt. Acknowledging the amount of money you own and asking if there’s a mutually beneficial solution can often elicit a positive response from your creditors. A positive, honest and calm approach can go a long way and help find a solution for all parties.
7. Recognise scams
As with anything in life if a solution to your debt seems too good to be true that’s probably because it is. Seniors are often target by financial criminals and seniors in debt are particularly vulnerable. Because of this it’s important to make sure you’re wary of each solution that presents itself and recognise any scams that show up, which could potentially leave you struggling in more debt!
Related links:
How to spot an online bargain from a scam
6 ways to make money online in retirement