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Reason: You’re Drowning in Debt
Adults 65 and older are carrying less debt, on average, than younger generations, as a GOBankingRates survey discovered. Even so, some retirees can’t keep up with what they owe and end up filing for Chapter 7 bankruptcy to have most of their debts discharged, or Chapter 13 bankruptcy to create a debt repayment plan.
How to Stop Drowning in Debt
To prevent debt from derailing your retirement, take steps to pay off what you owe before you stop working full-time. There are five debts you need to knock out before retirement:
- Credit card
- Student loan
- Auto loan
- Medical debt
You can get help creating a plan to tackle these debts from financial planners or credit counselors, who can be found on the National Foundation for Credit Counseling website.