Being in debt can be tough enough without also worrying how it may affect your retirement years — or even keep you from retiring. With debt, one major issue you face is the interest. With retirement, time is always a consideration. By balancing these two things, you can create a plan that can help you now and in the future.
How can you find that balance? Start by looking at your debts. Pay attention to what kind of debts they are and how high the interest rates are. According to the U.S. Department of Labor, consider excluding your mortgage and student loans and focus on credit cards, car loans, and other personal loans. If you’re buried under heavy interest, or the minimum payments take up too much of your income, it may be best to pay off at least part of the debt before you focus on saving for retirement.
If you decide to save for retirement while paying off debts, the U.S. Department of Labor suggests:
Saving for retirement isn’t easy especially if you’re in debt. But, if you consider these simple steps you can help ensure you’re on the right path to enjoy your retirement years.
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