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Tips for Managing Debt After 50

Are you over 50 and struggling with debt? If so you’re not alone. A recent census report shows half of Boomers don’t have any savings for retirement. Part of that lack of retirement savings may be attributable to debt taking up money that might otherwise be saved and preventing you from retiring debt free.

Many people in their 50s and beyond find themselves dealing with debt, whether it’s from credit cards, loans, or other financial obligations. But managing debt can be especially challenging as you approach retirement age, which is why it’s important to have a plan as soon as possible to get your finances on track.

stack of credit cards

One of the first steps to managing debt is creating a budget. This will help you get a clear picture of your income and expenses, so you can get a clear picture of where your money is going and where you might be able to cut back. It’s important to be realistic when creating your budget. Make sure to include all of your monthly bills and expenses, as well as any debt payments you’re currently making. Once you have a budget in place, you can start to look for ways to reduce your expenses and free up more money to put toward reducing your debt.

Another important factor to consider when managing debt is interest rates. High interest rates can make it even more difficult to pay off debt since more of your money gets eaten up by interest instead of paying down the principal balance. If you have credit card debt, consider the benefits and risks of transferring your balance to a card with a lower interest rate, or look for other ways to reduce your interest charges. some cards let you request it through your account dashboard though others might take a phone call and a conversation with customer service. Additionally, keeping your credit score in good standing can help you qualify for lower interest rates on loans and credit cards, which can save you money in the long run.

Assessing Your Debt

If you’re over 50 and struggling with debt, it’s important to assess your situation to get a clear picture of your financial health. This will help you make informed decisions about how to manage your debt. Here are some steps you can take to get the full picture of where you are at with your debt:

Calculating Your Debt

The first step is to calculate your total debt. This includes all of your outstanding balances on credit cards, loans, and mortgages. You can use your own spreadsheet or a debt calculator to help you keep track of your debt. Make sure to include the interest rates and minimum payments for each debt.

Determining Your Interest Rates

Interest rates are an important factor in managing your debt. They determine how much you’ll pay in interest charges over time. You should determine the interest rates for each of your debts. If you have high interest rates, you may want to consider consolidating your debt, requesting a lower interest rate from your cardholder, or transferring balances to a lower-interest credit card. Again, there are potential downsides to debt consolidation and balance transfers you need to consider.

Creating a Spreadsheet

Creating a spreadsheet can help you keep track of your debt and interest rates. You can use a spreadsheet you create yourself in Excel or Google Sheets to calculate your total debt, interest charges, and minimum payments. This will help you see how much you’re paying in interest charges each month and how long it will take to pay off your debt.

Assessing your debt with clear eyes is an important step in managing your finances. Rip off the bandaid put it all down where you can see it. and By calculating your debt, determining your interest rates, and creating a spreadsheet, you can get the total picture of your financial health and make informed decisions about how to manage your debt.

Creating a Budget

As you approach retirement age, managing your debt becomes increasingly important. Most of us will retire on a fixed income, despite our bills not staying fixed! One of the most effective ways to stay on top of your finances is to create a budget. Here are some tips to help you get started:

Tracking Your Expenses

The first step in creating a budget is to track your expenses. This will help you understand where your money is going and identify areas where you can cut back. You can use a spreadsheet or a budgeting app to track your expenses. Take the time daily to record your expenditures so nothing is forgotten. Check your bank and credit card statements routinely to catch any of those small, recurring charges you may have not noticed in a while. Be sure to include all of your monthly expenses, including necessities like rent/mortgage payments, utilities, and groceries, as well as discretionary spending like dining out and entertainment. Don’t forget to account for any cash you spend!

Cutting Back on Unnecessary Spending

Once you have a clear picture of your expenses, you can start looking for ways to cut back. Start by identifying areas where you’re spending more than you need to. For example, you might be able to save money on groceries by meal planning, shopping at a discount store (I love Aldi for getting the most out of my food budget!), or by using coupons or rebate apps like Ibotta. Similarly, you could cut back on dining out by cooking at home more often. You don’t have to suffer with just rice and beans. Focus on healthful foods you enjoy and will actually like to prepare and eat!

Another way to cut back on unnecessary spending is to eliminate subscriptions or memberships that you’re not using. For example, if you’re paying for a gym membership that you never use, cancel it and save that money. I just discovered I had two different subscriptions to the same streaming service. I literally smacked my head when I noticed.

For subscriptions you actually use and like, try canceling for a while. If you don’t miss it, then consider that money in your pocket. If you want to resubscribe you can often get a deal during a promotional period.

By tracking your expenses and cutting back on unnecessary spending, you can create a budget that works for you. Remember, the key to successful budgeting is to be realistic and flexible. Your budget should be a living document that you adjust as your circumstances change.

Remember as you are trying to trim your budget that your life is a marathon and not a sprint. Don’t make you and whoever lives with you miserable with an austerity program. No need to divide a two-ply roll of toilet paper into two separate rolls. Cut the waste in your life and use the money to pay off your debt so you can use your money on the things that benefit you and give you joy.

Developing a Debt Management Plan

If you’re over 50 and struggling with debt, developing a debt management plan can help you take control of your finances. A debt management plan is a strategy that helps you pay off your debts in a way that works for you. Here are some steps to help you develop a debt management plan that works for you.

Prioritizing Your Debts

The first step in developing a debt management plan is to prioritize your debts. In your debt spreadsheet, make that list of all your debts, including credit card debt, unsecured debt, and secured debt like a home mortgage. Then, prioritize them based on the interest rate, the amount owed, and the type of debt. Focus on paying off high-interest debt first, since that will save you money in the long run.

Negotiating with Creditors

If you’re struggling to make payments on your debts, consider negotiating with your creditors. Many creditors are willing to work with you to develop a repayment plan that works for you. Contact your creditors and explain your situation. They may be willing to reduce your interest rate, waive late fees, or even forgive a portion of your debt. You can do this yourself with just a phone call.

Exploring Debt Consolidation

Debt consolidation is another option to consider when developing a debt management plan. Debt consolidation involves taking out a loan to pay off your existing debts. This can simplify your finances by consolidating multiple debts into one monthly payment. You can consolidate your debts with a debt consolidation loan or a balance-transfer credit card.

Before taking out a debt consolidation loan or balance-transfer credit card, make sure to compare interest rates and fees. You should also consider working with a credit counseling agency to help you develop a debt management plan that works for you.

In summary, developing a debt management plan can help you take control of your finances and pay off your debts. Prioritizing your debts, negotiating with creditors, and exploring debt consolidation are all strategies to consider when developing a debt management plan. Work with a credit counseling agency to help you develop a plan that works for you.

Buyer beware — if you google debt consolidation you are going to get a lot of results that are really ads. When you are doing your research focus on official government information sites and reputable media sites, making sure you are not looking at something that is sponsored or otherwise for-profit.

Managing Your Debt

Managing your debt after 50 can be challenging, but with the right strategies, you can take control of your finances and reduce your debt.

Making Payments on Time

One of the most important things you can do to manage your debt is to make your payments on time. Late payments can result in late fees and higher interest rates, which can make it harder to pay off your debt.

To make sure you make your payments on time, consider setting up automatic payments or reminders. You can also rely on the budget you created earlier to help you stay on top of your payments and avoid falling behind.

Avoiding Late Fees

Late fees can add up quickly and make it harder to pay off your debt. To avoid late fees, make sure you know when your payments are due and plan ahead to make sure you have the funds available.

If you do end up missing a payment, contact your lender as soon as possible to see if you can work out a payment plan or negotiate a waiver of the late fee.

Improving Your Credit Score

Improving your credit score can help you qualify for better interest rates and lower your overall debt. To improve your credit score, focus on paying your bills on time, reducing your debt, and avoiding new credit accounts.

You can also check your credit report regularly to make sure there are no errors or fraudulent accounts that could be hurting your score. Equifax has a quick list of additional items that go into your credit score you need to know to maintain and improve your credit score.

Their list includes:

  • Payment history.
  • Credit utilization rate. 
  • Credit age. 
  • Credit mix. 
  • Total amount you owe. 
  • Hard inquiries.

Understanding what goes into calculating your credit score will help you stay on top of your debt, take control of your finances, and achieve your financial goals.

Planning for Retirement

When I talk about our retirement with my husband I mostly want to be assured I won’t have to eat cat food in a nursing home that is also a car wash. He assures me neither of those things will happen. We’ll see! As you approach retirement, it’s important to assess your retirement plan and make adjustments as necessary. Circumstances change in our lives and we have to adjust our goals. Here are some tips to help you plan for retirement even as your life changes:

Assessing Your Retirement Plan

Take a close look at your retirement plan and make sure it aligns with your goals. Consider the following:

  • Are you saving enough for retirement? Use a retirement calculator to determine if you’re on track.
  • Do you have an emergency fund? It’s important to have a savings account with enough money to cover unexpected expenses. There are some general rules of thumb to calculating your emergency fund, but make sure to consider your unique needs.
  • Are you taking advantage of any employer-sponsored retirement plans? Make sure you’re contributing enough to get the full employer match. You are leaving money on the table if you are not taking full advantage of any employer matching.
  • Do you have any debt? As we discussed previously, pay off any high-interest debt, such as credit card debt, before you retire.

Investing in Your Future

Investing in your future can help you build wealth and achieve your retirement goals. Consider the following:

  • Diversify your investments to minimize risk. Consider investing in a mix of stocks, bonds, and mutual funds.
  • Consider working with a financial advisor to help you make informed investment decisions.
  • Take advantage of catch-up contributions if you’re over 50. You can contribute more to your retirement accounts to help make up for lost time.
  • Consider delaying Social Security benefits. Waiting until age 70 to start receiving benefits can increase your monthly payments.

By assessing your retirement plan and investing in your future, you can help ensure a comfortable retirement with only your cat eating the cat food.

Dealing with Hardship

If you’re over 50 and struggling with debt, it’s important to know that you’re not alone. Many people in your situation experience hardship, whether it’s due to medical bills, job loss, or other unexpected expenses. Here are some tips for dealing with hardship:

Seeking Assistance

If you’re having a hard time making ends meet, it’s important to seek assistance as soon as possible. Here are some options to consider:

  • Credit counseling: A credit counselor can help you develop a budget and create a plan to pay off your debts. They can also negotiate with your creditors to lower your interest rates and monthly payments. Be careful when choosing a provider and thoroughly research how they are paid and what other consumers have experienced when using the service.
  • Debt settlement: Debt settlement companies negotiate with your creditors on your behalf to reduce the amount you owe. However, this option can be risky and may not be the best choice for everyone.
  • Bankruptcy: Bankruptcy is a legal process that can help you eliminate or restructure your debts. However, it should only be considered as a last resort. Consult with a lawyer and not the internet if you think this is a service you need.

Considering Bankruptcy

If you’re considering bankruptcy, it’s important to understand the different types of bankruptcy and the pros and cons of each. Here are some things to keep in mind:

  • Chapter 7 bankruptcy: Chapter 7 bankruptcy is the most common type of bankruptcy. It allows you to eliminate most of your debts, but you may have to give up some of your assets.
  • Chapter 13 bankruptcy: Chapter 13 bankruptcy allows you to keep your assets and create a repayment plan to pay off your debts over three to five years.
  • Pros and cons: Bankruptcy can provide relief from debt, but it can also have long-term consequences on your credit score and financial future. It’s important to weigh the pros and cons before making a decision.

Remember, you don’t have to go through this alone. Seeking assistance and considering bankruptcy are just two options to help you manage your debt and overcome hardship.


Managing debt after 50 can be a challenging task, but it is not impossible. By implementing the tips discussed in this article, you can take control of your finances and work towards a debt-free future. You can do this!

Remember to set realistic financial goals and prioritize paying off high-interest debt first. Utilize financial literacy resources and develop skills to manage your finances effectively. The snowball method can be an effective way to get out of debt, but it is not the only solution. Consider other options such as a line of credit or home equity loan, but be sure to weigh the pros and cons carefully. If you are not in control of your spending, options like this can turn a problem into a much bigger mess.

Tracking your debt and expenses through a spreadsheet can help you stay organized and on top of your spending. If you decide to work with a debt management company, be sure to carefully review any contracts and monthly fees. The National Foundation for Credit Counseling offers free follow-up sessions and can provide valuable resources and support.

Dealing with debt can be stressful, but with determination and a clear plan, you can overcome it and achieve financial freedom. Remember to stay focused on your goals and seek help when needed. You are not alone in needing to manage debt and there’s no need to feel any guilt about needing help. Taking control of your finances will give you security and freedom from worry.

Anne Parris

Anne Parris is a managing partner Midlife Boulevard. Her personal blog, Not A Supermom, is your typical mommy blog that her kids say used to be funnier. Anne has a business degree and a dusty résumé from a top accounting firm and a Fortune 500 company, which she reminds herself of every time she is washing underpants. She lives with her family in Virginia and blogs mostly to support her coffee habit.

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