Before the great recession of 2008-2009 things were quite well and debt was not at all a huge problem but nowadays it has become a major problem for the Americans citizens. Recent report from surveys of financial values and debt shows that one in few 22% boomers owe at least $50.000 in non-mortgage debt in 2009 and nearly 4 in 10 baby boomers had non mortgage debt of $25,000 in 2009 and their parents with debt of $25.000 and the main reason for this is the recent trend of extraordinary expense for lucrative living basically among the youngsters. However the great recession of 2008-2009 and the economy crisis have brought a lot of change in many boomers and they are saving their money for future and utilizing for good purpose only.
So from now onwards every Americans should make a goal to retire debt free even mortgage free and they should start from today.
Here are some tips that will help you to make you retire debt free:
1.Set up a plan and work on it-Every Americans from now onwards should make a habit of savings for future you need to change way of living.(change in the way of living in the sense change in your lucrative lifestyle) keep a check on your finance and spend according to your financial strength.
2.Paying down debt Vs Saving for retirement-Different experts have different opinion on this some says pay off your debt then start saving and some to do both at the same time, my suggestion is that have a look at your financial strength and go for both at a time. Yeah it might be painful sometime coz you need to do a lot of sacrifice for this cut off your extra lucrative expenses. But you need to do this for a debt free retirement.
3.Avoid borrowing from your 401(k) to pay down your debt-Sometime it sounds great to pay off your debt borrowing from your 401(k) plan when you are suffering from the burden of debt. But sometime it may create more problem as because you have to pay off the loan amount within 60 days of leaving your employer.
4.Try to work longer-If you are in debt especially non-mortgage debt and you are planning to retire then don’t do that because doing that you will be in trouble so try to eliminate your debt while you are working. Work for full time or part time to eliminate your debt and retire to live a debt free life in your old age.
So make a goal to retire debt free and enjoy a stress free life with your family members in your old age.
A step towards debt free retirement