10 ways to become debt-free before retirement



Becoming debt-free before retirement can provide you with financial freedom and peace of mind. To become debt-free, you must develop a realistic budget that outlines your income, expenses, and debt repayment goals. Allocate a portion of your income specifically towards paying off your debts. Cut down on unnecessary expenses and redirect those funds towards debt repayment.

Here are some steps you can take to work towards being debt-free:

Create a budget

Start by looking at your income and expenses, and create a realistic budget that includes a plan to pay off your debt.

Adhil Shetty, CEO,, says, “You can achieve financial freedom when you are debt-free. It is a good idea to pay off your debts before retirement. You need to be able to enjoy the limited income you have without worrying about your liabilities eating into it.”

Also Read: Planning to invest in company fixed deposits? Know these key things first

Cut expenses

Look for ways to cut expenses in your monthly budget, such as eating out less, reducing utility bills, or downgrading your cable package.

Pay more than the minimum

If you’re trying to get out of debt, paying just the minimum payment won’t get you very far. Aim to pay as much as you can each month.

Prioritise payments

Prioritize your debts by interest rate and pay off the higher-interest rate debts first. This will save you money in the long run.

Assess your current financial situation

Start by evaluating all your debts, including credit cards, loans, and mortgages. Take note of the outstanding balances, interest rates, and minimum monthly payments for each debt.

Sell unwanted items

Sell items you no longer need or use, and use the money to pay off debts.

Consider taking on a part-time job

Taking on an extra work can help you earn more money to pay off your debts faster.

Negotiate with creditors

Reach out to your creditors to negotiate lower interest rates or payment plans that fit your budget.

Seek professional help

Consider working with a financial advisor or credit counsellor to get personalized help in making a debt repayment plan.

Stay motivated

Remember why you’re working to become debt-free and stay motivated by tracking your progress and celebrating small wins along the way.

“An EMI factors both interest and principal payments. But a pre-payment is counted only against the principal. You can devise a pre-payment plan for yourself to pay off your loan quicker,” adds Shetty.

Hope these tips will help you plan to become debt-free before your retirement. You must apply these tips as per your financial situation and consistently work towards the debt-free goal.


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