6 Ways To Eliminate Crippling Debt Before Retirement

Having large amounts of debt can be a miserable experience. Sky-high interest rates can make it feel like you’re never making any progress toward paying anything off. 

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Monthly payments toward your debts will quickly eat up your retirement fund, so it’s essential to have a strategy to chopping your debt and getting rid of it. 

Stop Accumulating Debt

The first step to eliminating debt is not accumulating any new debt. This means putting away the credit cards, not getting any new ones, and generally living within your financial means.

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Increase Monthly Payments

Make more than the minimum payments if you can. You will ultimately save a substantial chunk of change if you can afford to make larger payments on your debts. 

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A reverse mortgage doesn’t come with a monthly payment. Instead, your reverse mortgage doesn’t require any repayment until after your or your heirs sell your home. 

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Take Out A Reverse Mortgage

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Cash Out A Life Insurance Policy

Depending on the type of life insurance policy you have, you may be able to cash it out and put the funds to use.  You can withdraw limited amounts of money from your policy, but there can be tax implications. 

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Downsize Your Home

You can make everything in your life more affordable by moving to a smaller home. If you have a considerable amount of equity in your home, you can sell your house and buy something smaller. 

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