subject: Debt Relief The New Option to Get Out of Debt [print this page] Debt occurs when a person buys something and is unable to pay cash for the entire cost of the purchase - the purchase can range from a few household items to a piece of real estate. This definition puts around seventy-five percent of all Americans in debt of some form. Many retirees and those nearing retirement are a significant part of the percentage, with most finding it challenging to handle debt and secure their retirement finances. You can control debt with relatively easy debt control strategies you can do yourself, or go to the professionals for aid in diminishing your retirement debt.
Easy Debt Control Strategies
To control debt, if not eliminate it all together, you need to spend significantly less than what you earn from your part-time job, business, or investment returns. This simple debt control tactic is applicable to those who are still working, those nearing retirement, as well as those who are already retired.
A more proactive way of reducing debt would be taking control of your spending by documenting your expenses. Track what you spend on by using paper and pencil, a computer spreadsheet program, or software for money management to help you steer clear of overspending and other possible causes of debt.
You can also buffer your funds against urgent expenses, by establishing an emergency fund. You can peg your emergency fund at a minimum of three months' living expenses. You can use this money for infrequent expenses (such as home repair, car maintenance, or purchasing new household appliances) or unexpected ones (like emergency travel or having to suddenly move to a different place of residence). The emergency fund helps you avoid piling up debt.
If you can't prevent debt, you can lessen its negative effects on your finances and your life with these basic debt control strategies. Aside from these tips, there are a number of professional debt relief options available for individuals who are overburdened with debts, such as credit counseling, debt management, debt consolidation, debt settlement, and bankruptcy. Call your financial advisor to know more about these options.
