As an Older Adult Now Is the Time to Get Out of Debt

Follow these tips to eliminate your debt.

Your older years can be one of the most rewarding life stages, provided that they are not filled with debt. If you have properly prepared your finances, you may find that you have time and money to travel, spend time with family and enjoy your hobbies. But if debt is an issue, you may find that your retirement years are not as comfortable as you would have liked. Here are some tips for dealing with debt as an older adult so you can enjoy a comfortable retirement.

Budget your money wisely
During your older years, you may find that you have more expensive and unexpected medical expenses than when you were younger. Because of the challenge of fitting medical expenses into a fixed income budget, you may feel that charging your purchases is the only way to afford everything you need. This, however, is a dangerous move for your finances. It may be difficult to come to terms with, but racking up credit card debt leaves an unfortunate legacy for your children when you pass away. Budget your money so you can use your savings if you need to cover unexpected expenses rather than going into credit card debt.

Use your home to your advantage
If you have a great deal of home equity or if you have completely paid off your mortgage, but are having a hard time making ends meet while you are retired, you may be a good candidate for a reverse mortgage. Instead of making payments to a lender, a lender makes monthly payments to you until your home is sold or you pass away. There are age restrictions and other requirements you must meet in order to be eligible for a reverse mortgage, but it can increase your income and help you afford your retirement years. If you have any questions about whether a reverse mortgage is right for you, talk to a professional in financial advising. He or she should be able to give you all of the information you need about what making this move can do for your retirement years.

Find ways to save
The first step to getting out of debt is saving more. There are a number of ways you can save money as an older adult. Look into senior citizen discounts at hotels and restaurants. Another good idea is to look into special membership programs with organizations like the American Association of Retired Persons (AARP). There are also discount programs for prescriptions and other services you may need. Though these discounts can't help you with debt, they can keep you from spending more money than necessary.

Related Life123 Articles

Long-term care insurance is essential to protect you from health care costs that can rapidly rise in the event of an illness or serious injury. It's best to get coverage when you're young and can lock in lower premiums.

Long  term care is a daunting prospect for anyone, but the high costs of long term care are particularly worrisome for people on fixed incomes or without adequate long-term care preparations. What happens if you can't afford the high costs of long term care? You might be surprised to discover that your options could be limited.

Frequently Asked Questions on Ask.com
More Related Life123 Articles

Long-term care insurance may seem like an obvious way to round out a well-planned retirement strategy, but the truth is that it's not an ideal solution for everyone. While long term care insurance can be helpful for some individuals, others might find that the risk outweighs the potential rewards. How do you know when you need long term care insurance?

When you're relatively young and healthy, it is easy to postpone saving up for long term care. However, you need to put together a plan that will ensure your later years are comfortable and enjoyable.

If your children are out of the house and you have reached retirement age, you may need to reassess your finances, especially when it comes to your home. Here are a few things to keep in mind as you grow older.

© 2014 Life123, Inc. All rights reserved. An IAC Company