You have just retired and want to explore all the wonderful things you have put off during your working years – traveling, home remodeling or buying a sporty new car. But there is just one problem – when you closed your office door, your credit card debt stayed open – with outstanding payments creating a large, gaping hole.
If you want to be serious about saving for your future – one of the first things you have to do is get rid of the revolving debt that can eat away your important retirement savings.
The first step is to cut up your charge cards. Only pay cash for your purchases when possible. Then go through your credit card balances and wipe out the smallest ones first. Every month roll the savings from that card into your other balances until they are paid off.
Once you are out of debt – stay out! Instead of putting your hard earned money into credit card payments and interest, you can funnel those funds into retirement savings accounts.