Top 10 Reasons You Might Go Bankrupt in Retirement

Senior Couple Concerned About Debt Going Through Bills Together.

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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.

credit card cutting


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:

  1. Mortgage
  2. Credit card
  3. Student loan
  4. Auto loan
  5. 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.

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