Retiring has changed in many ways.
The financial security of your retirement is impacted by the following:
- People live a lot longer after retirement age.
- Retirees live independently and more seldom as part of multi-generational families.
- For a multiple of reasons, today’s retirees are increasingly retiring with debt. CP24 reported on July 15, 2013 that over half of retired retirees were carrying debt – and mostly on their credit cards.
Simply because the majority of retirees are carrying debt, does not make it a good idea. In fact, it is a terrible idea.
Canadian retirees suffer from debt
Retirees are under sharply increasing pressure compared with the past:
- Children whose education costs do not translate into them leaving the nest.
- Children who divorce and return to the nest.
- The “spending entitlement” society.
- Loss of middle income jobs with pensions.
- Extravagant weddings for children.
- Financially assisting children with deposits on their first houses.
- Overly easy access to credit through reverse mortgages and pre-approved, low introductory fee credit cards.
- …. And the list goes on almost indefinitely.
The consequences of this debt when on a fixed retirement income are serious. Some portion of this income will be eaten up, servicing the debt which leaves less for daily living expenses. More important is the emotional anxiety associated with having outstanding debt. Guilt, fear and the stress of juggling everything to try and make ends meet. And that is before the collection agency calls start, then lawsuits and frozen bank accounts and seizing of pensions.
The retirees I see in my professional practice simply cannot repay everything owed – and creditors want to be repaid right now! Years of willingly suffering financial hardship to repay have not helped them make any headway. Consolidation loans fail to solve the core problem – debt does not solve debt!
How to get out of debt?
The sooner you deal with your debt, the sooner you will be stress free… Have a Licensed Insolvency Trustee, acting as an Officer of the Court, negotiate a deal with all your creditors that is fair to both sides. This is called a Consumer proposal, and is not a Bankruptcy. If the majority by value of your creditors agree, every creditor is forced into he deal. The only people who will find out are the creditors you need to have a fair deal with.
No more interest and no other fees. This is the fastest way to get debt relief and stop creditor actions, such as debt law suits or harassing creditor calls.