More Australians are facing retirement with debt looming over their shoulders. With increased debts, comes increased financial hardship in the years which are meant to be stress free and fun.
According to a recent study, Australians are entering their twilight years with about $150,000 in mortgage debt. In fact, another lot of research found that for those over 65 non-mortgage debt only makes up around two thirds of their overall debt.
If that’s the case some people are easily entering their later years with over $450,000 in debt!
How will I ever be able to retire?
It’s never too late to take control and focus on getting yourself out of debt. Just because you find yourself facing retirement with a growing amount of debt doesn’t mean you are stuck working for the rest of your life.
There are a number of companies out there, like Debt Cutter, who can help get your consumer debt under control, letting you focus on getting retirement ready. It may also be worth getting in contact with a financial advisor who can advise you on the best strategies to grow your wealth and make your superannuation work harder for you.
It’s also important when you make this resolve you also focus on the non-financial aspects of debt, as we’ve written before, your debt is costing you more than just money. It’s important you also make sure your emotional health is in check as well as your financial health.
Focus on what REALLY matters
It’s important if you are facing this kind of financial hardship you take a look at yourself and begin thinking about how you can get out of debt, but also how you can begin to grow your wealth. After all, the financial situation you retire with will determine the kind of life you will have.
As we said above, you should focus on making your superannuation work harder for you, despite being in debt. This will help to maximise the amount of money you will have available when you do retire.
Put together your plan and stick to it
When you are trying to get out of debt and retirement ready it’s important you get together a plan to make this happen. Have a long hard look at yourself and your finances to see how you can possibly pay off your debt sooner.
It may be worth calling in a company like Debt Cutter who can negotiate with your creditors for payment terms you can afford. We may be able to negotiate lower repayment amounts meaning you have extra money left over to be putting into super. We may also be able to reduce the amount of interest you will be paying, freeing up money in the long run that you can put away for retirement.
Just because you are facing debt and financial hardship as you head into retirement doesn’t mean you are facing a bleak future. It’s important you take action to get out of debt and get your finances under control so you can focus on a stress free retirement.