Addressing Your Debts in Preparation for Retirement
Anyone who says that you cease to be in demand after you turn 40 is not thinking about things from a financial perspective. When you reach middle age, everyone in your family looks to you as a source of financial stability. You are the one with a well-established credit history, so younger family members, as well as relatives your age who have run into bigger financial obstacles than you have, look to you to co-sign for loans with them. Meanwhile, your elderly parents need increasing amounts of your help, and every hour that you spend helping them is an hour that you could spend earning money. As your anticipated retirement date draws closer, it becomes clearer that there simply is not enough time or money to go around. You are starting to understand what journalists mean when they say that most seniors will never be able to retire. They simply keep working until they are no longer healthy enough to drag their old bones to work anymore, and then they start drawing Social Security and spend part of every month living on instant ramen noodles. If your only realistic plans for retirement involve your debts continuing to follow you around after you retire, contact a Miami bankruptcy and retirement lawyer.
A Paid Off House and Car Are Financial Freedom
The first step to paying off your debts is to count your blessings. You have a job, and you are healthy enough to continue working at least until you turn 65. Even better, you own a house and a car. If you were younger, economists would lord it over you that you should start by paying off your debt with the highest interest rate, and feel-good personal finance influencers would give you encouragement by telling you to start by paying off the debt with the smallest outstanding balance, but all of this is young people’s talk.
A paid off house and a paid off car amount to the best retirement anyone can hope for these days, even if you have little in the way of cash savings. Your paid off house is an emergency back up plan in so many ways. Family members can move in if they run out of money to pay their own rent or mortgages. You can take out a home equity loan or reverse mortgage in the future if you need it. Your spouse can keep the house if you eventually need to enter a nursing home as a Medicaid beneficiary.
Discharging Your Debts In Bankruptcy Before Retirement Could Be the Reset You Need
Filing for bankruptcy protection might determine whether you can eventually afford to retire. You can discharge debts such as credit card debts and old medical bills that have been following you around for years. Most people who file for chapter 7 bankruptcy protection, which discharges your eligible debts quickly, can do so without liquidating any assets.
Work With a Debt Lawyer About Debt Relief for Your Aging Household
A South Florida debt lawyer can help you if you are getting close to retirement age and struggling with debt. Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.
Source:
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