When entering retirement the last thing you want to do is have a bunch of credit card debt.
Unfortunately that's not the case for many consumers that are entering retirement with a ton of credit card debt.
According to some of the top consumer credit counseling agencies in the US, the fastest demographic that are entering credit counseling are indeed senior citizens. many baby boomers are reaching the twilight of their career and are staring down the barrel of credit card debt, and a viable alternative to doing anything drastic is reaching out to credit counselors.
Those that were preparing for retirement have had to re-evaluate their financial planning due to the fact that the economy might of effected their 401(k) balances or their savings tied up in securities, and with less to live on in their retirement their credit card debt is going to greatly affect their retirement plans.
Consumer debt analysts have researched debt and retirement trends, and currently 56% of retires had some sort of credit card debt when they retired, but 96% of those individuals refused to delay retirement because of the outstanding debt. Another interesting statistic was that 53% of retirees use their credit cards to buy medicine, pay for doctor visits and all other medical expenses.
In this economy another scary fact is that many seniors are also using credit cards to help their adult children who have become unemployed.
Whether you're a recent college graduate, or a senior looking to retire having debt hanging around your neck is not pleasant and an uncomfortable situation. For those seniors on a fixed income being in debt is even worse.
Debt is a huge hurdle to leap over when considering retirement; it's hard enough of living on fixed income but if you have the burden of debt to deal with it can seriously hold you back. Luckily for those in debt there are some great options to help you out with your debt.
The first plausible course of action is to analyze your financial planning and setting some attainable goals as your reach your retirement age. Set goals on building your nest egg, and check to see if the recession has damaged your savings significantly.
There may be a need to change your strategy as far as your portfolio is concerned, and you may need to revisit your financial plan and see if it still will assist you on your journey to retirement.
If you analyzed your financial plan and come to the conclusion that you don't have nest egg that you planned on, or the recession had turned the tide on your retirement plans you may want to consider continuing working until you've paid down your debt.
If the original goal was to retire at 66, and you decide that you're going to work three more years that translates into three more years of income and three years less that you're going to draw from your retirement or other resources. It also means that you have three more years to build your nest egg up, and take care of that nasty credit card debt.
Another consideration and alternative to working full-time is to find a part-time job to supplement your savings. You can continue drawing Social Security to pay down your debt-of pay off your debt-because holding onto debt and paying the minimums will only increase the balance because of the compounding interest. Financial advisers claim that it's in a future retiree's best interest to wait, save and you receive the maximum benefits once you reach the full retirement age 65.
Distributions from your traditional, SEP, and SIMPLE IRA must begin withdrawing from their retirement accounts by April 1st following the year that they reach the age of 70
Posted in 
Tags: 
Thanks, Glen. It seems that credit card debt is so common that people forget that it will affect other choices they make.
Learn about all of your top consumer debt relief programs Petal ...: Another course of action that is getting l...
Things are going to get plenty worse regardless of who wins, because we are headed for a collapse of the Canadian housing bubble and consumer debt crisis which are a direct outcome of Conservative economic policies.
At which point an atty will sue him for his credit card debt.
Now you might say, “He could sue them if they don’t pay.” Well, that doesn’t change the fact that AMEX is going to want their money at the end month. Can’t pay? AMEX will sue you. Claim bankruptcy? You’re still going to have to pay it under the new consumer debt B.K. laws.
You should get credit counselling and speak to a lawyer about your options. Bear in mind credit counselors are often paid by the credit card companies. If you have to or decide to fulling pay down the debt do the following:
Consumer Debt Reduction Programs | eHow.com
and note ‘savings desires’ include borrowing to, which means spending more than incomes. Debt subtracts from one’s savings, just as setting dollars aside adds to ones savings. And the recent rise in savings that’s coincident with the increase in the federal deficit is more in the form of reduced consumer debt than increased savings account balances.
He should go to the credit counselors. As seen on T.V.! And those strip clubs visits have to stop.
Some one needs to restore some level of fiscal sanity . This program is the most worthless of any fraud laden government spending. A bonanza for credit counselors that get paid thousands to talk on the phone for 20 minutes while the banks cancel home modification for invalid reasons with impunity .
Tips credit card. Credit counselors. Lower Debt to Income Ratio
United Debt Experts Credit Card Debt Reduction – How Stimulus ...: How to get a reduction in the credit card ...
Credit Card Offers for People with Bad Credit History – A Chance ...: Given that credit card debt that fit this d...
Do it. I have a Master's degree. Worth the effort. With credit card debt you won't make it. Shake off the cards though. Cut them up & get help. See http://www.daveramsey.com
If you do this and keep the credit cards- you will end up the fool.
Jewish Credit Counselors - "Guilt your way to a better score"
Even with these changes, we will experience declining prices for some time. Baby boomers are moving from buyers to sellers and the potential buyers are fewer in number and more overburdened with student loans and consumer debt.
Combination, simply no mater might know about can be speaking about, methods all the combined regarding quite a few merchandise in to the one particular, in addition to credit card debt is actually any outstanding connected with bucks.
Below average in two studies this week! No consumer debt, no fast food for me. Things are looking up I guess!
Thanks Mr. Krugman! I had asked in an earlier comment on another post who benefits by the tight money policies of VSP and this editorial fits the bill. Our legislators need to be called out on their failure to live up to their duty to respresent the interest of those they are supposed to represent. The law that exempts credit card debt from bankruptcy and the failure to allow judges to modify mortgages in foreclosure proceedings now makes sense. Democrats and Republicans that continue to support these policies need to be called out.
We also have no consumer debt, a year of expesnes in an emergency fund, healthy retirement accounts and growing savings in other locations, so buying this “want” isn’t going to cause hardship or drive us into debt.
sinz54: “Now AFAIK, neither the Dems nor the Repubs have proposed any comprehensive solution to this huge consumer debt overhang. I don’t even know if there is a solution which doesn’t involve the risk of hyperinflation.”