As you turn 66, it might be time for you to retire from work. Before you do so, you need to see that you are financially stable. You will not have a steady income source after retiring, and you are also ageing. You cannot do another job to help repay any debts you may have. Worse, you do not want to let your kids shoulder these debts.
You could have sleepless nights because you have no idea how to repay these debts. Remember these tips to help you solve your problem.
Reduce your housing costs
Whether you own or rent your home, you need to start lowering your monthly housing expenses as you are about to retire. Make sure it does not go beyond 28% of your monthly income. You want to have more disposable income so that you can spend on what you wish to buy and gradually repay your remaining debts.
Prioritise credit card debts
Your primary problem right now is your growing credit card debts. Usually, the interest rates on credit cards are quite high. If you are unable to pay on time, the penalty is also high. You might find yourself paying a lot each month, but the principal amount remains the same. Plan your income in a way that you can pay all your credit card debts as soon as possible. If it entails sacrifices, you need to do it. You also need to stop using your credit cards altogether.
Do not co-sign for anything
When you co-sign for a loan or any other purchase, you are not getting any benefit at all. If the person who borrowed the money is unable to repay the loan, the creditor will go after you. At your age, you do not need additional stress. Besides, you already have lots of financial issues to bear, and you do not want to worry about other people too.
Create realistic goals
You need to start planning not only for this month but for the following year. You know how much you will be receiving each month and you also have an idea regarding your recurring bills. You need to list everything down. You need to use as much as you can of your current salary to repay your debts. Make sacrifices if possible and change your current lifestyle. Stick to the budget plan even if it seems difficult.
Make the most of your property
If you own a property, you can try for an equity release loan. Even if it is a loan, you will not need to worry about its repayment immediately. You will only pay the loan once you die, through the value of your property when it sold. You can make an agreement with an equity release loan provider now and get the money you need. You can use it to repay your other loans and achieve significant financial goals.
You can talk to experts at http://www.55plusequityrelease.com if you are unsure about this type of loan. Since you are not sacrificing anything in the process, this path could be the best way forward.
Hopefully, you can straighten everything out soon since you want to relax as you age.