Retire Your Debt, So You Can Retire Too

Most people have a clear idea of what they’d like their retirement to look like when the time comes.

From spending more time with your family to travelling around the world; retirement should be a chance for you to enjoy yourself any way you choose.

Unfortunately, unresolved financial issues can have a serious impact on your retirement, particularly if you still have a substantial amount of debt.

Although it’s normal to have some form of debt, people generally imagine that their mortgage will be paid off and they will be debt-free by the time they’re ready to retire.

In reality, this isn’t always the case.

In fact, a significant number of retirees experience on-going debt problems after giving up work.

With a proactive approach, however, you can resolve your financial issues and look forward to a fun-filled retirement.

If you want to retire your debt, so you can retire too, take a look at the issues you might need to address:

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1. Do you want to retire?

Many people look forward to their retirement, but a substantial number of people choose to keep working well beyond retirement age.

If you love your job or you enjoy being active, staying in employment may be a viable option.

If you enjoy your job and don’t particularly want to retire, having a large amount of debt might not seem disastrous.

However, if your feelings change or your job role is modified, you may no longer work on a full-time basis.

If your monthly debt repayments would prevent you from retiring, you’d be left in an uncomfortable situation.

By resolving your debt problems now, you can continue working for as long as you choose too, without the burden of financial issues hanging over you.

2. Will you be forced to retire?

Some industries have mandatory retirement ages, which means you may not have a choice about when you give up work.

If so, it’s essential that you address your debt problems now.

Although a mandatory retirement age can be frustrating, it does give you certainty over when you’ll be leaving your job.

With a specific timeframe in mind, you’ll have the incentive you need to address your debts and improve your financial situation before your retirement date rolls around.

3. Can you keep your home?

Many people choose to downsize when they retire, and this can be a viable way to realize your assets and release some funds.

If you have a substantial amount of equity in your home, for example, you could potentially sell your property, buy somewhere smaller and pay off your outstanding debts.

While this seems like a good plan, there are many variables that could cause it to go awry.

If house prices drop, for example, you may not have enough to finance a smaller home and pay off your debts.

Even if you were able to do this, very few people have enough money to purchase another property, pay off their debts and finance a comfortable lifestyle in their later years.

If you’re counting on using the equity in your property to resolve your debts, make sure you do your sums carefully.

It’s easy to assume that you’ll have the funds when the time comes but that isn’t necessarily guaranteed.

Resolving your debt problems now will mean you’ll be less reliant on your property in the future and have more freedom about where you live and what lifestyle you can enjoy.

4. Do you have borrowing power?

As you get older, you lose the option to borrow money from lenders.

If you’re in your forties, you may still have time to extend your mortgage or increase your loan.

As you approach your sixties, however, it’s unlikely you would be able to borrow a significant amount.

Although you could use the property as collateral and allow the lender to retain some of the funds when it’s eventually sold, many people are reluctant to do this because they want to ensure their loved ones have some form of inheritance in the future.

Remember – borrowing regulations and trends can change at any time.

Just because it seems relatively easy to secure loans and credit now, doesn’t mean it will be when it’s time to retire.

Resolving Your Debt Problems Before You Retire

Taking action now means you can solve your financial issues before you retire.

Whether you enter a debt management plan, file for bankruptcy or make a consumer proposal, there are a variety of ways to improve your financial situation.

If you’re considering filing for insolvency, it may be important to act quickly.

Both bankruptcy and consumer proposals stay on your credit file for some time.

If these forms of debt solutions are right for you, the sooner you take action, the sooner you can begin to rebuild your credit rating.

Of course, you won’t know exactly what forms of debt relief are right for you until you obtain specialist advice.

By consulting a licensed insolvency trustee, you can learn more about the debt solutions available to you and the impact each one would have on your finances and your credit rating.

Contact Bankruptcy Canada Now

At Bankruptcy Canada, we’ve been helping people to overcome their debts for more than 20 years.

With licensed insolvency trustees on hand to help, we can provide all the guidance and information you need when it comes to resolving your debts and preparing for retirement.

If you’re already retired and you’re still experiencing financial issues, it’s not too late to reach out.

Our dedicated team can help you to find a way to resolve your debts, even if you’re no longer working.

To talk to someone in confidence, contact Bankruptcy Canada now on (877) 879-4770.

We’re available 24 hours a day, 7 days a week and we’re always happy to help.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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