Noting the median mortgage debt for seniors rose by 82 percent, from $43,400 to $79,000, MHProNews has learned the CFPB report says mortgage debt is “threatening the retirement security of millions of older Americans. In general, older consumers are carrying more debt, including mortgage, credit card and even student loan debt, into their retirement years.”
Ken Moraif, senior adviser at Money Matters in North Dallas, Texas said “When you retire your debt should be retired.” He adds one of the dangers of retiring with mortgage debt is if the markets and economy turn bad, the bank is not going to say you can live there for free.
Having debt following retirement adds to your fixed expenses and reduces your ability to enjoy entertainment and travel, or perhaps restricts something crucial like medical needs. James Gambaccini, a financial adviser with Acorn Financial Services in Reston, VA says before the Great Recession he knew of clients trying to retire and build a 15,000 square foot dream home. “I advise clients to keep working to pay off debt,” Moraif said. “Maybe spend another six months or a year working. You will spend the rest of your life with no debt. It’s worth it.” ##
(Photo credit: fotosearch–unhappy, worried man)
