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How to handle debt in your later years

Getting a handle on your debts is always going to be challenging, but approaching retirement, they can be particular overwhelming.

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In later years, it’s fair to say your finances will change as you approach retirement. Though you will begin to receive your pension, your income is likely to take a cut and you could find it harder to keep up with bills and any other debts you might have.

If you’re worried about your finances and are struggling with debts – no matter how big – here are some tips that may help:

Budget

Budgeting is the obvious solution, but it’s easier said than done, especially if you’re not used to keeping a tight rein on your spending. Begin with essentials; food, utilities, once you have these covered, you can pay off any outstanding debt and save for any rent or mortgage re-payments.

Consider part-time

Just because you have retired from full-time work, it doesn’t mean your work-life needs to end. If things get too much, why not search for a part-time job? This could be good for your well-being, meeting new people and your pocket.

Get everyone to pitch in

As ‘head of your family’ you might feel obliged to treat them. But, this can take a huge chunk of your budget. Instead, cook a big meal at home, with everyone pitching in ingredients. After all, you’re doing the cooking, but you can save cash and still spend valuable time together.

Pay your debts

Most importantly, try to pay off your debts with your budget, don’t just ignore them. Try to sacrifice luxuries and be savvy until you’re out of the dark. Even small things like re-thinking your utility providers can save you hundreds.

Talk it through

If you find yourself in a tricky financial situation, you must talk to someone, or seek professional advice. The worst you can do is brush your problems under the carpet, attempting to cover them up will make them worse, and both your physical and emotional well-being will be affected.

There are many companies who can give you free advice on how to deal with debt. Creditfix is one, and for those that feel they have nowhere else to turn, they will listen.

Last modified: June 10, 2021

Written by 10:49 am Finance

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