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.
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.
Make minimum payments on all your debts except the one you want to pay off first. Then take the amount you paid on that debt and apply it to your next debt – and so on and so forth.
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.
Depending on the type of life insurance policy you have, you may be able to cash it out and put the funds to use. Universal life and whole life insurance build cash as you contribute payments in excess to your premiums and your earnings.
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.
If you’re contributing the annual maximum of $19,500 to your 401(k), you’re putting in $1,625 each month.If you were to take even $1,000 of your contribution each month and allot it toward debt payments, you could pay off a significant amount of debt in a year.