No one should carry significant debt into retirement, not even remaining mortgage payments. If you are still a few years away from retirement you should look at your finances and ensure that you will not have any significant debt when you retire. If you need advice you should seek it out. After all, you will want a comfortable retirement and there are things that you can do even in middle age to give you the best chance of achieving that. In the last decade before retirement you should prioritize getting rid of debt while at the same time look to increase your saving.

When it comes to saving you should think about an emergency fund if you have not already got one. If you suddenly face an unexpected medical or household bill, how will you pay it? It is something that too few Americans take into consideration.

Professional Advice

There are plenty of things you can do for yourself when it comes to looking at your financial future though perhaps when it comes to taxation you should perhaps take professional advice? You want to take advantage of what the IRS allows. Similarly if you are looking for investments then an advisor makes sense because you should avoid anything risky as you advance towards retirement. The process of getting rid of your debt is something you can do for yourself.

Expensive Debt

The most common debt that people carry is that on credit cards. The average debt in the USA is around $7,000 while the significant percentage that are in trouble with their payments owe over twice that much. The problem is that the rate of interest applied at the end of each month to such balances is penal, even approaching 30%. Anyone that merely pays off the minimum that the credit card companies require each month will not be reducing their balance in any meaningful way. The bulk of their monthly payment will only be paying the interest with little coming off the principal.

There is a cheaper solution to this obvious problem. It requires the self-discipline when it comes to finance which you may not have shown in the past. If retirement is impending, it is certainly dangerous not to learn it quickly. You should add together the debts you have on credit and store cards and investigate whether you can get a personal instalment loan to cover that amount. Even if you have a poor credit score you will find that such a loan incurs a far lower rate of interest. There are online lenders who look at realistic applications and prioritize affordability in making their decisions.

A loan that pays off all expensive debt will only be available while you have a regular monthly income. If you find a good online company that has established a good reputation, you will simply need to demonstrate that you have the regular income and a bank account. You will need to provide simple information to allow the lender to make a decision.

There is every likelihood that you will be approved in which case you will actually receive the money within a business day.   You pay off all your balances immediately but make sure you never again use your credit card for anything that you cannot settle in full at the end of the month. There is no need to cancel a credit card. Admittedly if you do there will be no temptation but it will actually harm your credit score to reduce the overall credit facility that you hold.

Surplus

The ideal scenario is that this action will provide you with a surplus that can be used in a positive way towards your future. The younger you are the more time you will have to build up your savings towards retirement. Anything that will supplement your social security benefits will help and the younger you are the more you can put aside. As previously mentioned it is important to avoid risky investments even if they offer a significant amount more than standard ones. You can lose everything on a risk. If you have taken positive action and repaired your finances, you do not want to damage your future by making a poor decision.