Establishing Credit & Managing Debt
Good credit practices throughout your lifetime and a good credit rating can be one of your most valuable assets in retirement. No matter what phase of life, protecting your credit, using it wisely and maintaing a positive credit history is important to your success.
Managing debt during your income-earning years can contribute greatly to the funds you have available in retirement. Consolidation of debts is one option.
Homeowners can free up equity accumulated in their home by re-financing their mortgage or by tapping this equity through a home equity line of credit (HELOC.) Equity can then be used to reduce or eliminate higher interest rate debt. And while it's possible to tap your retirement savings (IRA, 401(k) accounts) for funds, there are penalties for early withdrawal. Consult your financial advisor for debt management solutions.
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