Are you thinking about retiring?
10/19/2023
By: Tami Budreau
When one retires and typically goes from 2 - bi-weekly pay days to 1 - monthly social security and pension deposit, it takes a bit of reorganizing payments to match income. And, of course, one is noticing the increased interest rates that the credit card companies are now charging.
For instance, this week I had a customer who had not quite gotten their finances paid off prior to retirement. They had just $6,900 still owing on their car note but had seven credit cards with a total balance of $25,306 and monthly payments of $975 each month on the bills.
We computed options and were able to pay off the vehicle and credit cards. They went from 8 different payments to just 1 payment. Their interest rate on the cards went from 21+% to 7.99% - making their interest cost decrease from $437 every month to $166 a month. Their finances are now organized and paying extra will be so much easier when one doesn’t have 8 payments to juggle.
If you’ve just retired and would like to tidy up your finances, give me a call. Perhaps we could work up some options to organize your bills into one payment and save you $271 a month in interest expense!