Payoff your Debt before Saving for Retirement

Day 4 - Paying off debt
Image by quaziefoto via Flickr

 

A lot of people are trying to save money for their Retirement years and have questions concerning how to go about saving and paying off their debts to prepare for retirement. 

The following information was given by Steven Zeller, a Gold River, CA, based investment adviser regarding credit card debt and publised by RISMEDIA:

If you are heavily in debit, he would not encourage anyone to go into bankruptcy proceedings if he or she can help it.  It creates a lot of stress and is not the best for your self-esteem.

If you have multiple credit cards to payoff, I would begin paying off the credit cards, starting with the smallest one first, until they are all gone for good.

It may be painful at first, buy you will increase your cash flow over time by eliminating the monthly payments.

He also stated,  “At the end of the day, if you pay into an IRA and Roth IRA instead of paying down your credit card debt, you will still have debt. ”

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