Paying Down Debt
April 10, 2025
Nobody wants their name or finances associated with large amounts of debt, but it is also difficult for most to simply pay off everything they owe without a second thought. When considering your financial plans, it is important to account for future flexibility while maintaining a comfortable financial position in the present. There are several options for paying off debt, and that can feel overwhelming. The best way to pay off debt depends largely on how much you owe and how it compares to your income.1
Consider these strategies that can improve your debt and buying power without making drastic changes to your current lifestyle:
- Prioritize High-Interest Debt: Focus on paying off high-interest debt first, such as credit card balances. This will save you the most money in interest over time.
- Create a Debt Repayment Plan: Develop a plan that outlines how much you will pay towards your debt each month. Stick to this plan to make steady progress.
- Consider Refinancing: If you have high-interest loans, explore refinancing options to secure a lower interest rate. This can reduce your monthly payments and total interest paid.
- Avoid New Debt: Be mindful of taking on new debt as you approach retirement. Focus on living within your means and saving for the future.
Your income and expenses are likely to change as you approach and enter into retirement. A well-thought-out plan can help provide confidence. Contact us to schedule a consultation to speak to someone familiar with what to expect from your retirement expenses.
1. https://www.nerdwallet.com/article/finance/pay-off-debt?msockid=2c9d3e05a3bc689100722ddda2906909