{"id":1530,"date":"2020-08-01T14:35:07","date_gmt":"2020-08-01T09:05:07","guid":{"rendered":"https:\/\/www.extramilefinance.uk\/blog\/?p=1530"},"modified":"2020-08-01T14:35:09","modified_gmt":"2020-08-01T09:05:09","slug":"how-you-should-tackle-your-debt-when-you-are-retired","status":"publish","type":"post","link":"https:\/\/www.extramilefinance.uk\/blog\/how-you-should-tackle-your-debt-when-you-are-retired\/","title":{"rendered":"How You Should Tackle Your Debt When You are Retired"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_52 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f5af729cfe2\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f5af729cfe2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-you-should-tackle-your-debt-when-you-are-retired\/#Downsize_your_budget\" title=\"Downsize\nyour budget\">Downsize\nyour budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-you-should-tackle-your-debt-when-you-are-retired\/#Smartly_manage_your_debt\" title=\"Smartly\nmanage your debt\">Smartly\nmanage your debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-you-should-tackle-your-debt-when-you-are-retired\/#Avoid_taking_out_a_new_debt\" title=\"Avoid\ntaking out a new debt\">Avoid\ntaking out a new debt<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Debt is terrifying even though you are\nearning the right amount of money and having debt at the time of retirement is\nscarier. Retirement is golden years when you would like to pursue your hobbies,\nbut to spend a peaceful retirement life, you need to have debt-free. <\/p>\n\n\n\n<p>Though everybody dreams of having a\ndebt-free retirement life, not all of you are fortunate enough to spend it\npeacefully. A good rule of thumb says that by your golden years, you should\nhave settled all your debts including mortgage repayments, built up a large pot\nof savings, and be finically strong enough to spend years ahead without fear.\nStill, unfortunately several people do not spend golden years as they should. <\/p>\n\n\n\n<p>Mortgage repayments, credit card bills and\nmedical debt can suck peace from your life, and you will go deeper into\ndepression with each passing day. Financial experts suggest that you should\nhave settled all your debt repayments before you start living your golden\nyears, but it is likely that you have some debt obligations in your golden\nyears. You do not need to let anxiety hit your ribs as you can quickly deal\nwith debt with the following tips:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Downsize_your_budget\"><\/span>Downsize\nyour budget<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You must have a plan for how you will live\nyour life at the time of retirement, but the debt must be compromising your\nfinancial health. It is crucial to settle all your dues immediately to take\ncontrol of your finances and live your golden years the way you want. <\/p>\n\n\n\n<p>The timely settlement will not cause\nimpediment down the road. If you have debt at the time of retirement, your\npriority should be finding ways to pay off your outstanding debt quickly. It is\nwhen you will have to downsize your budget. It means you will have to cut down\nsome of your expenses. For instance, if you have a big house, you can downsize\nit. <\/p>\n\n\n\n<p>If you have two cars and you need only one,\nyou can sell the other one. It will not only whittle down day-to-day\nmaintenance expenses, but you will also save a lot of money by selling your\nhome or car. You can put that money toward your debt. <\/p>\n\n\n\n<p>However, it is not necessary all the time\nto dispose of your assets. If your debt is smaller, it will instead set you\nback. It would be best if you instead focus on cutting back on expenses like\nentertainment, food, travel, and the like. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smartly_manage_your_debt\"><\/span>Smartly\nmanage your debt<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you have multiple debts to tackle, you will have to choose which obligation you will deal with first. First off, you should settle debts with high-interest rates. For instance, credit card bills are more expensive than <strong><a href=\"https:\/\/www.extramilefinance.uk\/loans\/without-guarantor.html\" class=\"aioseop-link\">bad credit loans with no guarantor<\/a><\/strong>. Therefore you should pay off credit card bills first. You should opt for balance transfer credit cards as you will pay lower interest overall. <\/p>\n\n\n\n<p>If you are on a mortgage, make sure that you have enough money flowing in to keep up with repayments. Defaults can add up the cost, and you will likely lose your home. Since mortgage repayments are generally more significant than the other debt repayments, you may have to do a part-time job. Some companies are out there who offer jobs to retired. <\/p>\n\n\n\n<p>Some companies are reliable that they will\nlet you work from home. However, it depends on the job type. Retirement does\nnot mean that you cannot start your second career. Having a part-time job will\nsupplement your retirement income and help you pay off your debts faster and more\nefficiently. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Avoid_taking_out_a_new_debt\"><\/span>Avoid\ntaking out a new debt<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It will be great if you do not take out a\nnew debt down the road at least for a couple of months unless your life gets\nback to the track. Try to figure out what dragged you in debt, so you do not\nrepeat those mistakes in the future. <\/p>\n\n\n\n<p>After repaying outstanding debts, you\nshould try to build an emergency cushion to meet unforeseen expenses down the\nroad. In case you come up with a significant expense, funding sources are\nalways available out there. <\/p>\n\n\n\n<p>If you are under debt at the time of\nretirement, you should consider downsizing your budget and make a repayment\nplan to pay off debt with high-interest rates. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Debt is terrifying even though you are earning the right amount of money and having debt at the time of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[151],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1530"}],"collection":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=1530"}],"version-history":[{"count":1,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1530\/revisions"}],"predecessor-version":[{"id":1532,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1530\/revisions\/1532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media\/1531"}],"wp:attachment":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=1530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=1530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=1530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}