economy
3 Debt Issues to Address Before You Retire and Claim Social Security
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TL;DR
- Many older Americans face retirement with more debt than previous generations.
- Retirees need to address high-rate credit card debt, delinquent federal debts, and unsustainable mortgage payments before claiming Social Security.
- High-rate credit card debt can significantly impact a fixed retirement income due to high interest rates.
- Federal agencies have collection tools that can affect Social Security benefits for certain unpaid federal debts.
- Unsustainable housing costs can consume a large portion of a retiree's budget, making other expenses difficult to manage.
- Proactive debt management before retirement can lead to greater financial flexibility and a more stable retirement.