PAY DOWN DEBT

Retire debt to help you retire on time.

Debt isn't a problem. Too much debt is. If 15% of your income goes toward credit card bills or non-secured personal loans, it's time to take control. Especially if you're only able to make the minimum payment on credit cards.

Did you know that paying the minimum $60 payment on a $3,000 credit card bill will take eight years to pay it off and cost $2,780 in interest? That, by the way, is if you never spend another penny on the card. But pay an extra $50 (for a total of $110 a month) and it'll be gone in three years — saving $1,800** in interest.

Last month you may have found some money in your budget for paying down debt. So let's put it into action.

RESOURCES

Prime Earners

Not all debt is the same. Mortgages and home equity loans are most likely tax deductible, so you may want to pay down other loans first.

Empty-nesters

Raising a child costs about $180,000 — before college. That's why you may have more debt to pay down than you'd like.*

Retirees

It's important to keep expenses as low as possible. But if you're not careful, debt can keep growing. Pay it off to help stretch your income.

*United States Department of Agriculture estimate

**Consolidatedcredit.org

"A man in debt
is so far a slave."

– Ralph Waldo Emerson

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