Family Credit

‍Outlet: MarketWatch
Author: Alisa Wolfson

Key Takeaway

Credit card debt can put pressure on both your current budget and your future retirement income. Understanding what you owe is an important part of preparing for the next stage of life.

Michael McAuliffe Discusses Retirement Preparation

Family Credit Management President Michael McAuliffe contributed to a MarketWatch Picks article answering a reader’s question about preparing for retirement at age 70.

McAuliffe discussed employer retirement benefits, catch-up contributions and the importance of addressing high-interest debt.

“It’s hard to build retirement savings while paying credit card interest”

— Michael McAuliffe, President, Family Credit Management, in MarketWatch

Why Credit Card Debt Matters Before Retirement

Retirement preparation involves looking at your monthly expenses alongside your savings. If credit card payments are already stretching your budget, consider how those payments would fit into your expected retirement income.

High interest charges can also make repayment frustrating. Part of each payment goes toward interest, leaving less to reduce the balance. Understanding that cost can help you set realistic goals and evaluate your options.

Our credit card payoff calculator lets you explore how your balance, interest rate and monthly payment affect your payoff timeline.

Finding a More Manageable Path to Repayment

Start by listing your credit card balances, interest rates and minimum payments. Compare those obligations with your income and essential expenses to see what you can realistically afford to put toward repayment.

If interest charges are slowing your progress, explore options for lowering your credit card interest rate.

You can also talk with a nonprofit credit counselor about your budget and repayment options. For eligible consumers, Family Credit Management’s Debt Management Program may provide reduced interest rates and combine participating debts into one monthly payment.

Credit counseling can help you address the debt side of your finances. A qualified retirement adviser can help you evaluate savings, investments and retirement income decisions.