Free This Debt to Live a Comfortable Retirement!
As we become an adult, we face extremely challenging experiences like budgeting our salary to pay our bills and responsibilities. We realize how difficult it is to save our money to live a comfortable life and retirement.
Oftentimes, we find ourselves having debt, either for our mortgage, car loans, or personal loans. Not to mention we still need to prepare for our retirement fund. If you’re one of these challenged working adults who struggle to pay off their debts and build their retirement funds, then the financial experts recommend you to focus on eliminating this debt first to increase your chances of having a better retirement.
The Burden of Mortgage Debt
Out of all debts a working adult may avail, Winnie Sun, a financial advisor, recommends you get rid of your mortgage debt or payments before you retire as much as possible. She also advised the working adults to focus on paying it down as soon as possible as it can help you prepare your retirement better. According to her, you don’t need to wait for 30 years or so just to pay your debt. If you don’t do anything to quickly pay your mortgage, you might end up still paying your debt during your retirement days.
In order to live a mortgage-free debt life, especially when you retire, Sun recommends you up your payment by 5-10%, depending on how much you can afford. In this way, you’ll be able to pay your mortgage faster.
She noted that the current mortgage debt value is now around $73, 923. And the results of the recent study revealed that most people with ages ranging from 56-61 are still paying off this debt, and its rates are rising every year compared to $27,493 mortgage debt last 1992. Of course, Sun also emphasized not to leave your retirement savings hanging while you pay off your mortgage debt.
Tips to Pay Your Mortgage Debt
If you’re struggling to eliminate your mortgage debt, the financial experts recommend you apply the following tips:
Make Sure You’re Ready to Buy a New Home
Before you start searching for a real estate agent and canvassing for your preferred home, it’s important to make sure you’re financially stable enough to buy a new house. These six questions will help you assess your current financial status to determine whether or not you’re ready to apply for a mortgage.
- Are you currently debt free?
- Do you have at least 6 months worth of your salary for emergency funds?
- Can you pay at least 10-20% downpayment for your mortgage?
- Do you have enough money to cover your moving expenses?
- Can you afford to pay for a 15-year fixed-rate mortgage loan?
- Can you afford to buy the utilities or pay the maintenance for your new home?
Downsizing your lifestyle and properties can be a great help in maximizing your money and retirement funds. For example, consider selling or renting a few rooms in the larger home you have and use it to buy a smaller home. If possible, try to pay in cash method for your new home to avoid being in debt. If not, at least you’ll still be able to eliminate your mortgage debt sooner because of the smaller balance you have.
You might think that spending $1 for a sandwich or $10 for your fast food meal may not hurt your pocket or savings, but that’s where you’re dead wrong. Instead of spending $100 or so per month for your lunch and dinner takeout, you can allocate it to paying for your mortgage debt. In fact, doing so can help save you $28,000 or more for your mortgage interest. If you make small sacrifices today, you’ll be able to save $25,000 of mortgage interest and which means four years worth of your mortgage loan.
More in Retirement
Tesla Stocks Drops to Its Worst Performance in Two Years After Elon Musk’s NYT Interview
Tesla’s shares drop to an astounding $1 billion in a day after the New York Times published an interview with CEO...August 21, 2018
You Should Know This One Hard Truth Before Becoming a Home Flipper!
Sidney Torres is known for being a self-made millionaire. He earned his money by renovating houses in New Orleans. Now that...August 21, 2018
Experts Reveal The Best Way to Build Your Retirement Fund
Everyone wants to have a comfortable retirement. We look forward to the day we finally stop working and start living our...August 20, 2018
Before You Start Searching For Love You Need To Read This 7-Year-Old Boy’s Love Story
Sometimes in life, when you least expect it, that’s when love hits you. Just like this love story about two people...August 20, 2018
Harley-Davidson Employees Enraged with Layoffs After Tax Cut
The iconic Harley-Davidson surprised thousands of its employees when they announced the layoffs, despite the company expecting huge privileges from the...August 10, 2018
How to Ramp Your Business On Social Media Marketing in Summertime
With summer in full swing, now is the time to ramp up social media campaigns and get in front of the...August 7, 2018
6 Ways You can Save for Retirement in Your 30’s
If you are in your 30’s or something, then you should have already started saving for your retirement. If you haven’t...August 5, 2018
6th Anniversary of FB IPO Shows Massive Rise in Prices
Last Friday was the most anticipated day for Facebook investors. Why? Because it’s the company’s sixth anniversary of its initial public...August 5, 2018
7 Best Loans for People With Poor Credit
It just so happens that people who need the loans and credit the most are ones who have to face the...August 4, 2018