Staying Out of Debt on a Fixed Income

When people tell you that your expenses will get less expensive when you retire, they are probably grasping at straws to give you hope or consolation. Unless you drive from Philadelphia to New York City for work every day, then no longer having to buy gasoline for your work commute will not bring enough financial relief that you will feel it acutely. Furthermore, it is not true that healthcare is free after you turn 65. Yes, Medicare part A premiums are free, but Medicare part A only covers hospitalizations, not including any nursing home care you might need after treatment for your acute illness or injury. You still have out-of-pocket costs for doctor’s office visits and most prescription drugs. It is still possible to be in debt after you retire. Being in debt as a retiree is at least as stressful as being in debt when you are younger. While you are working, you can always reassure yourself that you only have to make it to the next payday, and then you can make a payment on your debts. You can also take on as much gig work as you have time for to supplement your income, while holding onto hope that you will find a new job that pays better than your current one. Debt relief is still possible if your old debts have followed you into retirement or if you have suffered an unexpected financial hardship late in life. For help getting out of debt when you are over 60, contact a Philadelphia debt relief lawyer.

Which Expenses Can You Trim When You Retire?

Your expenses do not magically plummet once you turn 65 or once you retire. Yes, you get the occasional senior discount at restaurants, but mostly the changes to your spending are what you make of them. Here are some easy ways to reduce your spending in retirement:

• Cancel your cable or streaming service or both. Instead, socialize in person and watch free YouTube or rent movies and TV series digitally through the public library.
• If you have a landline phone, cancel it. Cell phones are sufficient for your generation.
• Ask your car insurance provider if you qualify for reduced premiums. They might reduce your premiums, considering that you now drive less than you did while you were working, and that your car has depreciated in value.

Debt Relief Options for Retirees

Many debts are too big to ward off with just a few frugal fixes. Retirees have the right to file for bankruptcy protection, but it is understandable for them to want to avoid doing so. Less scary options might include settling directly with creditors outside of court or, if you own your house, borrowing a reverse mortgage.

Contact CONSUMERLAWPA.com About Coping Debt After Retirement

A Philadelphia consumer law attorney can help you if you are retired and have debts that you cannot pay off with your retirement income.  Contact CONSUMERLAWPA.com to set up a free, confidential consultation.

Source:

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