Retirement days are fast approaching: Tips to get ready if you are not

When speaking about financial security, then personal debt tops the list of topics people choose to discuss about theirs. And fortunately it has secured its place as one of the most engaging topics in the country.

So, what does financial security got to do with you?

This piece of article is got to do more with the retirees who are making a living out of fixed sources of income and have financial limitations to abide by.

According to the Federal Reserve Bank of New York, retirees are increasingly becoming indebted at an unprecedented pace. They have a combined debt that has risen from $8 billion in 2005 to a staggering $43 billion in 2014.

The buck doesn't stop at this, more and more seniors as a result have reportedly defaulted on their loans. While there are many who don't know exactly what they should be doing to subside their crushing debt, as retirement inches closer by the day.

Now that you are concerned about how to start tackling your debt before it is too late to recover, you may have a look at the below discussed financial hacks to prepare for a financially sound retirement, if you haven't till date.

Start evaluating your finances

Ignoring your financial obligations is the most easiest and the surefire way to screw up your finances. So, if you think that keeping the credit card bills lying will help you avert monetary woes, then you are grossly mistaken, as it would soon become a breeding ground for endless legal as well as mental hazards. So, the first thing needed to resurrect your financial security is to start paying heed to the payment deadlines mentioned on those bills. Remember to go through the statement and assess all that has been reported. No matter how scary it might appear to you, but you've got to figure out your overall debt obligations, nevertheless.

As for the troubleshooting part, make sure to look for ways that you can handle comfortably. Find out the kind of payment plans you have in place all these years and what are the interest rate charged on each of your monthly payments?

Consolidate your debt into one, ask for settlement or have your credit card balances transferred to a zero balance APR (annual percentage rate) card - do whatever deems fit, but do something constructive, instead of lying idle on the heap of debts. You can talk to your creditors' representatives and get the outstanding credit card balances transferred to another low interest card of theirs. You'll be surprised to see how forthcoming these people are when consumers like you with financial problems come to them for help.

Downsize your extravagant lifestyle

Regardless how terrible it may be for you to swallow your ego and let go of your inflated lifestyle (spending on luxurious items more than on necessary ones) just to impress your colleagues and neighbours, believe me when the debt collectors will come knocking at your doorstep, then these people will be least bothered to come at your rescue.

So, be selfish and say no to that weekend party, if you think attending so will your trample your budget and make you splurge more than you've planned for the week. People who coerce you for such things are nothing but your favorite (and of course disguised) financial frenemies - a combination of friend and enemies.

Don't let the mercury of your savings sag

Sometimes, its good to let the mercury rise, especially when something as important as savings is concerned. And remember not to remember that you've got any savings when you're looking for funds to pay back your debts.

Even if you don't have any debt repayments to make, still your savings is your nest egg and eroding it will surely be a catastrophic blow to your financial security during the golden days. Having a solid savings fund stashed away at some of the best retirement vehicles like 401(k), Individual Retirement Accounts (IRA) and so on will humble you after you've hung up your boots.

Always plan to succeed and never to fail

As the adage goes, failing to plan is planning to fail. Make sure this does not happens to you at least, once you've retired. So act now and in the living present. Consult your family members, win them over to your side, allow them to participate in planning for your retirement and lastly, when all's been done, consult a seasoned financial planner to have a holistic, fool-proof retirement plan in place. All that I have said here aren't rocket science, rather its something that has been repeated numerous times.

However, after having gone through all these financial hacks, if you think you require some kind of a debt help, then you are most welcome to go through all the ideas and tips about to how to get rid of your debts that are discussed here.

  • expertise badge
  • TrustLink logoTrustLink logo
  • Customer ratings on BBB
  • IAPDA logo
  • Calchamber Member
  • Calbar Registered
  • D&B
  • Trustpilot
  • yelp logo