How to Get Out of Debt Before Retirement: 3 of Our Best BlogsJul 21, 2017
How long will it take for you to get out of debt? Are you banking on the real estate market?
Here in Penticton, there’s more to the housing story. Home prices are up, but housing shortages have led to renters paying more than a third of their monthly income for a place to call home. And attracting new families to Penticton has been difficult, as more than half of the people expected to be moving to town are seniors.
For seniors, carrying debt can make it harder to enjoy a full retirement. But if you can’t afford to move, or if you’re looking to sell soon, is it worth it to fix up your home?
Playing the real estate game
If you are approaching retirement and want to renovate your home, here are some questions to ask yourself:
- Does your home need a renovation or would some cheaper upgrades suffice? Think energy upgrades, new paint and fixtures.
- How much existing debt do you have and what is it costing you each month? Can you afford to add to your debt payments? Use the Government of Canada Financial Goal Calculator to see.
- If you plan on moving, have you factored in all additional costs? What will happen if you don’t get what you expect from the sale of your home?
- If you renovate, will you still be able to cover your retirement contributions and other debt obligations?
While we don’t have specific stats about seniors, a new BDO poll shows that 21 per cent of homeowners that are renovating aren’t saving enough for retirement. Another 15 per cent fear a housing market collapse will lower the value their home.
Are you prepared for retirement? These blogs can help:
- Those who renovate this year plan to spend an average of $16,439, and 25 per cent of that will be financed by debt. This could leave less room for retirement savings and existing debt payments. Learn how to prioritize retirement savings, consolidate debt loans and reduce your stress.
- What is debt management? Tackle your debt and get your finances back on track in 3 steps.
- Reduce stress and make a plan to be debt free. Create a retirement budget and make sure you’re covering your bases.
Is renovating on your 2017 “to do” list? Can you afford to deal with the debt that comes with it? Share your thoughts with us and find more debt advice by searching #HomeReno #DebtSolutions