3 Crucial Loans to Pay Off Before Retirement: A Financial Wake-Up Call for Americans
School LoansCollege loans are some of the longest-lasting debts Americans deal with. As you near retirement, these loans may increase if you've borrowed money to help your children through college.
School Loans– Average borrower takes 20 years to pay off student loans.– Student loans aren't tax-deductible.– Social Security benefits can be affected if you default.
Personal Loans and Credit CardsPersonal loans and credit cards often have the highest interest rates, making them critical to pay off before retirement.
Personal Loans and Credit Cards– Average credit card interest rate is 23.55%.– Personal expenses often end up on credit cards.– Avoid delaying retirement savings while paying down these debts.
Auto LoansAuto loans can be a significant financial burden, especially with rising interest rates.
Auto Loans– Average new car loan interest for excellent credit is 11.19%.– Bad credit interest rates can soar up to 21.51%.– Average monthly car payment recently spiked to $700.
Mortgages generally have lower interest rates and tax benefits, making them less urgent to pay off compared to high-interest debts. Prioritize paying off high-interest loans and bolster your retirement fund instead.