Credit card debt story: Don’t crying on your debt

Many families spend much of their income to their creditors to keep distance. The result is less money available for retirement savings. Thus, your home loans, auto loans, credit cards and paid, and you'll have more financial leeway. Making this change is easier if you start planning the transition and in advance.

The Consumer Federation of America said that the average balance of households that include a credit card debt from one month to over $ 10,000. Credit card debt is the least desirable, because interest rates are very high and the interest you pay are not tax deductible. My advice: Put away the plastic. Think of the real cost of your purchases, including debt service.

Consider refinancing to a lower interest rate to free up money to save for retirement. But do not take money from your home unless the equity that you will use to repay the debt the higher costs. And do not tap into your equity to get money to invest, unless the investment has advantages and virtually no downside. If you find one like that, call me!
Of course, getting rid of debt is about making hard choices and that means you will not get anything you want. Maybe you will not be able to travel overseas or help your child buy a home or a new car every two years. This would imply sacrifices.

If you adjust to a tighter budget now, it could have a double-edged advantage. First, you'll be able to save more for retirement. and, secondly, once you're used to living with less, you'll need less income in retirement.
Whatever your decision, you want your partner on board. If we resents deprivation is a recipe for trouble.