Owing money just before and during retirement is more common than people may think. In fact, 2016 data showed that 70 percent of U.S. households headed by people between 65 and 74 years of age were holding some amount of debt. Even for households headed by individuals 75 and over, 50 percent held debt. Retirees in Connecticut have some unique challenges when it comes to debt management as they typically have a fixed income.
When choosing whether or not to file for bankruptcy, most people consider a few different options. One of the most common considerations is debt consolidation. This refers to taking on new debt to cover old debt, combining most or all outstanding balances under one new loan. Connecticut individuals weighing the options between this and personal bankruptcy have a few things to consider.
When children or relatives go off to college, it is often an exciting and expensive time. Some people may be approached during this period to co-sign on a student loan or on student loan refinancing. Since student debt is a common debt management issue across Connecticut and the United States, it is worth looking into the specific risks of this decision before choosing to do so.
Fitting debt into a monthly budget can be a difficult task. Many people in Connecticut struggle with balancing debt management with other priorities, like saving for the future. Here are a few tips for those struggling with saving for retirement and paying off debts.