06 Jan Why file bankruptcy? ’cause you’re growing older
So, what have you saved to make that retirement happen? More than 30% of Americans have saved less than $25,000 for retirement. And an increasing percentage of us are living into our 90’s.
To my mind, the needs of retirement are one of the most compelling reasons to seriously consider bankruptcy. If you are making no progress in paying down credit cards, chances are your future ability to retire that debt is no better than your success in the past.
Take a look at the exercise I did earlier here looking at paying your way out of debt. Look at the wildly different outcome on retirement security if you ditch the debt and put what you are spending in minimum credit card payments monthly into an IRA.
I’ll give you a sneak peak: if your credit card debt is “only” $20,000 and the interest rate on that balance is “only” 18%, it takes more than 37 years to pay off the credit card. Put that same amount of money monthly in an IRA, and in 37 years, you have a retirement kitty of $317,000.
Being debt free in 37 years is cold comfort if you are living on Social Security alone, or compelled to live with family because you can’t afford to maintain your independence.
Get real, today, about your money so you can retire in the future.
Bankruptcy is not just an escape from the past, it is the door to a better future, if you take it.
Image courtesy of Nicole Corboy.
Cathy Moran, Esq.
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