Too many people are letting credit card debt eat away at their retirement dreams.
Going into retirement debt-free is ideal, but unfortunately, it isn’t always possible. According to a study on credit card debt statistics done by The Ascent, the people with the most credit card debt are those aged 50 to 59 — just years from retirement age.
With the high interest rates on credit cards, carrying that debt into retirement can mean drastically less disposable income when you need it most. It can even mean drawing from your retirement accounts at a faster rate than planned and potentially running out of money. If you’re nearing retirement age with credit card debt, here’s how to get on top of the situation.
Focus on high-interest debt first
Your first priority should be paying off high-interest debt — an interest rate above 7% — such as credit card debt.