Dealing with high amounts of debt can be a stressful and taxing experience, regardless of one’s age. However, for those who have entered retirement age, debts may pose a greater threat to their financial stability, as dealing with similar issues while on a fixed budget can be a challenging task. Individuals in Ohio who wish to safeguard this area of life could benefit from speaking with a bankruptcy attorney for guidance on how to reduce or eliminate debts.
While a person may spend years saving for this period of life, his or her strategy might not have included the possibility of entering retirement with substantial amounts of debt. In some cases, financial concerns could cause a person to consider dipping into retirement savings to pay off debts. However, this might not be advisable, as there could be tax consequences for similar actions.
Although those who have entered retirement might have less ability to earn income, pursuing a part-time job could prove helpful, and even if this isn’t ideal, it may only be temporary. Even for those living on a fixed budget, there could be areas where a person can trim expenses to help cover financial obligations. In some cases, a person could also consider putting off retirement for a year of two in favor of entering the golden years free of debt.
Entering retirement with high amounts of debt is a major concern for many individuals. Those who wish to protect their futures from the potential consequences of debt could speak with a bankruptcy attorney for guidance on how to pursue some much-needed relief. An attorney in Ohio can address a client’s circumstances and assist in forming a strategy to reduce or eliminate debts and safeguard his or her financial future.
Source: U.S. News & World Report, “7 Steps to Pay off Debt in Retirement“, Rachel Hartman, May 17, 2018