In This Article:
Introduction to Debt-Free Living
How to Know if You Have A Debt Problem
What You Should Do To Reduce Your Debt
Helpful Articles Related to Senior Finances
It will be nice to just sit, back, relax and enjoy the fruits of your labor. Besides, after working hard for several long years, who would want to be burdened with credit card debts, mortgage and car payments? Would you?
Being in a recession for more than a year now, just doesn’t help. More and more people, including seniors and baby boomers are struggling with their finances, forcing them to tap into their credit cards to help pay for their bills and postpone their retirement. However, people, including seniors, are sometimes ashamed or embarrassed to get help. People usually do not like to talk about their finances and are scared to admit that they have financial issues. As a result, they end up ignoring their debt, which eventually accumulates throughout the years.
Being debt-free can be challenging since it takes a lot of commitment and discipline. Evaluating your financial situation is the first step. What’s next? Read the rest of the article to get simple and effective ways to a debt free living.
How do you know if you have a debt-problem? Here are some signs to help you:
Sound familiar? If so, then you may be in deep financial debt. It’s hard to admit, but you have to act now before your financial situation becomes worse. Here are some simple and effective ways to help you manage your debt, leading to a happier and worry-free retirement.
What should you do to reduce your debt?
1. Evaluate.
Analyze your answers. Remember, knowing how much money you have and your monthly expenses will help you plan ahead.
2. Track your expenses.
This includes things paid in cash, checks and credit card.
This will help you identify whether you are spending excessively on things that you don’t really need.
3. Set goals.
Come-up with realistic goals and be motivated to attain it, like:
Answering these questions will help you set your short-term and long-term financial goals.
4. Stick to your budget.
If you don’t have one, now is a time to start a budget.
If you’re having a hard time sticking to your budget, be realistic and make the necessary adjustments.
5. Stop accumulating.
By keeping your debt payments below 20% of your total monthly income will help you manage your debt effectively.
Did you know? Keeping your “debt-to-limit” ratio on your credit card below 35% will help improve your credit score.
6. Make more.
Instead of complaining that you do not have enough money, why not:
7. Get help.
If you’re having a hard time managing your debt, look for a financial consultant or use a debt management company.
Before hiring a third party to help manage your finances, do your research to ensure the company is reputable. Be cautious. Remember, if it’s too good to be true, then most likely it’s a scam.
Want to get more debt management tips? Read Simple Debt Managing Strategies For Seniors.
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Catharine “Kate” is a Certified Administrator for Residential Care Facilities for the Elderly (RCFE) and an Expert Senior Care Advisor. Kate’s grandmother battled Alzheimer’s Disease and Kate personally understands what millions of families are going through. Kate and her team are very passionate in empowering Seniors and their families by providing them with the Best Available Senior Care Options based on Senior’s care needs, preferred location and family’s budget.
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