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Debt in retirement can be financially crippling

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As people begin planning for their retirement futures, taking into account how much credit card debt they currently hold is a crucial element, according to U.S. News and World Report. Debt is not limited to mortgage payments and college loans, it can also come in the form of credit cards. Overlooking these monthly drains on a fixed income could cause unnecessary financial hardship.

The amount of money that people collect in retirement is often significantly less than they were making while working. When retirees have to account for debt payments, their fixed income may be quite a bit less than they had planned for, the media outlet reports.

While many people may have been counting on the equity in their home, or residuals from a universal life insurance policy to support their retirement, the recession has washed away much of that financial security, the American Association of Retired Persons reports.

Without income help, people could be left without enough money to live a comfortable lifestyle. If someone approaching retirement has debt, it may be in their best interest to delay those plans and work for a few more years to eliminate it, according to U.S. News and World Report.  

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