Retirement is something that those in the top age group of the workforce often look forward to. After punching the clock for most of their adult lives, those nearing the retirement age can’t wait to spend some time enjoying their grandchildren, their hobbies or simply relaxing for a while. Although the golden years are something that is looked forward to, financially it isn’t always the easiest time in life.
For those nearing retirement in this current era, the funds seem to be less full then many couples planned for. Many people lost large chunks of the retirement funds in the past few years that they set aside or had planned to rely on. The economic recession, job crisis, housing crisis and every other financially negative situation in the recent past caused a lot of personal debt and inadequate retirement funds. In fact, according to a Fidelity Investments survey, approximately half of the baby-boomer generation will say goodbye to their work schedule with debt.
Debt can be difficult to get out from under while earning at our full earning potential. It is hard to work ahead and cut away at outstanding balances. In retirement, monthly income is often lower. The last thing that retirees want to happen would be to run out of money, be unprepared to handle medical issues that come with aging or to have to just scrape by.
Paying down your debt before you retire can help avoid a negative situation. If you are already having trouble paying down outstanding debt, Chapter 13 provides an avenue to reorganize debt so that it becomes manageable. A Chapter 13 reorganization plan consolidates the claims of multiple creditors into a payment that the debtor can afford.
Source: Kiplinger, “Downsize Your Debt Before You Retire,” Eleanor Laise, Jan. 22, 2013
If you want to learn more about how Chapter 13 debt reorganization, our Tampa website provides information on the overall process and how different types of debt are handled.