Before you leave the workforce, you want to make sure your retirement plan is built-up enough so that you can stop working. One of the most important factors of your retirement status is your debt. It is critical that you pay off all debt or at least significantly reduce it before considering retirement in Overland Park. If you don’t, it could leave you in a real financial pinch that can follow you through the later years of your life, making it difficult to make ends meet.
The trend with today’s retirees is moving more and more towards entering the golden years saddled with debt. This is a massive cause for concern, and if this is your current situation, you should take action. Set up a meeting with our team at Pro 31, one of the most trusted accounting firms in Louisburg Our team proudly assists clients in Louisburg, Paola, Overland Park, Olathe, Kansas City, and numerous other surrounding cities. We will work with you to get a plan in that will help get you out of debt.
According to Kiplinger, here are some things to consider before you develop your plan to eliminate or reduce your debt.
Consider How Much Debt You Have
When looking at your debt, most accountants in Overland Park, Louisburg, and Kansas City use a ratio to figure out if you are over a certain threshold. This threshold tells banks, creditors, and other financial entities whether you are a liability or a good investment.
Make sure and contact your trusted Pro 31 accountant in Louisburg, to talk more about this threshold and meet with them to see where you fall. If you do not meet the current standard, it’s a good idea to come up with a plan to get there before retirement.
Work on Lowering Your Current Interest Rates
There are many ways to lower your interest rates for credit cards, home loans, and other creditors. One way to lower your interest on your home loan in Overland Park is to refinance. Remember, you have to be able to lower the rate enough to make the remortgage worth the effort. Make sure and plan this out with your Pro 31 accountant in Louisburg to check current rates and know what you qualify for.
There Are Many Methods to Paying Off Debt in Overland Park
One method is to pay off all your smaller debts to give yourself a sense of accomplishment and keep you motivated to continue paying off debt. If you can make extra payments, you can start checking debt companies off your list faster. Another option is picking the debt with the highest interest rate and focusing on making extra payments on that loan until you get it paid off.
These two ways and their effectiveness vary by situation. Make sure you talk to your accountant in Louisburg about your options and what would work best for you.
At Pro 31, we are a respected, full-service Louisburg accounting firm that serves numerous communities in the Kansas City metro area, like Overland Park, Olathe, and Paola. We help individuals plan for retirement and offer numerous other financial services.
Pro 31 also offers payroll services in Louisburg, Paola, and Overland Park, along with small business accounting in Louisburg and numerous other Kansas City metro area communities. If you are interested in partnering with our team, give us a call at our Louisburg office today at (913) 837-3131 or contact us online to sign up for a free quote.
We look forward to meeting with you soon.