FLM2017 The Best Ways to Reduce Debt Before RetirementNov 02, 2017
Reducing your debt before you enter retirement is one of the best ways to protect your financial and personal security. Here are some ways you can make that plan a reality.
- Schedule your debt repayment
Are you planning to pay off all your debt before you retire? If you haven’t come up with a specific plan and timeline yet to reduce your debt, the months and years to pay them off could slip by and interfere with your retirement plans.
With Financial Literacy Month (FLM) in mind, the Financial Consumer Agency of Canada has retirement plan resources that can help you make a plan. As your debt dwindles and you have money to play with, remember to make a plan for that, too. As Choi from Money We Have explains, being intentional with your money helps keep you out of debt. Savings, emergency funds, investing, and using credit responsibly are all part of having healthy finances, and a healthy retirement.
- Get help with your debt
If you have debt that you can’t reduce, it can help to talk to a professional. A Licensed Insolvency Trustee (LIT) can go over your finances and determine if a formal debt solution is the best option for you.
The sooner you know your options, the sooner you can make a decision and get your retirement plan on schedule.
- Consider a side hustle
You might think that taking a second job or finding a creative way to make money is for people just starting out. But more and more Canadians of all ages are thinking outside the box to help them pay down debt, save for short and long-term goals, and supplement their retirement.
You might be taking your skills for granted. If you are or were a teacher, a repair person, a musician, writer, or parent, for example, those skills are easily transferable into part-time work. If you have a passion you don’t get to explore in your everyday work, a side job can be a great way to do that, while making more money.
Reducing your debt before retirement doesn’t necessarily have to be complicated. Take the steps that suit your lifestyle and finances to help you ease into retirement debt-free.