Lower your debts
Many older Americans continue to accumulate debt at an alarming rate. Increased debt loads work against the goal of increasing the amount of income available once you do retire.
Even though interest rates are at historically unprecedented low levels, credit card rates haven’t followed suit. Credit card rates can range from between 17 % to close to 30% for consumers with low credit ratings.
The current levels of outstanding debt carried by those individuals over 60 and nearing retirement is astounding
Recently, the Federal Reserve Bank of New York reported that as of June 30, 2019, individuals in their 60s held $2.16 trillion in debt — an increase of 62% just since 2007 (the beginning of the 2008 financial crisis) — and almost five times the amount of debt ($440 billion) held at the end of 2000.
The financial benefits of reducing credit card debt is a matter of simple arithmetic. Examine your latest monthly statements and calculate the amount of interest that is accruing on current balances.
Paying off the total outstanding balances would save current accrued interest charges that could be added instead, to your total retirement savings accounts.