Is It Possible To Be Debt Free By 50?

The dream of retirement by the age of 50 is not a far-fetched dream to have. Many talented and skilled individuals find the wealth that carries them into retirement when they are in their 50s-60s.

Unfortunately for some people, the weight of their ever-expanding debt that has snowballed throughout their lives comes between having a restful retirement and working for as long as possible to pay off all of their accumulated debt.

This is no way to live, and of course, as you reach the age of 50

According to new data from Experian, the average credit card balance in the U.S. is $5,221, and personal loans are up to $17,064. This is just on average, and when you are approaching the ripe age of 50 it is understandable to start to question how to tackle such large debts.

When we were in our 20s we all imagined enjoying our retirement on a tropical beach sipping cocktails, but with a huge lump of debt, it can seem impossible to imagine. 

It is possible however, but taking the correct steps now to alleviate your debts is essential if you wish to reach a certain level of financial security. Being debt free, even if you are already in your 50s is a goal worth working towards.

Negatives Of Debt In Your 50s

If you are sailing through your life attempting to ignore your responsibilities to pay off debt, you should consider the negatives effects debt will place on your life:

Reduced Disposable Income - The interest that accumulates with paying off debt over time can consume a large portion of your income after paying other bills, leaving less money for experiences and enjoying your life.

Medical Problems - As we get older, we are more susceptible to illnesses and serious health concerns. The effects of stress on our health can be detrimental, and dealing with debt when we are vulnerable can be dangerous.

Potential Lost State Pension - If the volume of your debts without effective management leads to bankruptcy, you are liable for your pension to be at risk.

What Steps To Take

You Must Change Your Mindset

How you perceive debt is one of the most important things if you hope to see change. If you are approaching your 50s or even are at a later age, debt should be seen as something to be resolved in comparison to something to live with. 

Certain debts perhaps might be considered manageable and unavoidable such as a mortgage and medical expenses. If you currently are not considering your debt as a burden to be solved, you need to change your views. 

If you hope to create a fast-track route to living debt free in your 50s, your mindset should align with these values. Commit to the change!

Consider What A Debt-Free Life Means

Before jumping into action, you should take some time to consider what living debt free would mean for you, no matter what age you are. 

We all have goals, places we hope to visit, and people we wish to help when we can settle down and ease into retirement. Perhaps you would simply love to have the extra money to save up and pass the money down to your family. 

Regardless of your reasoning, being done with debt is beneficial for everyone, but you should reinforce these values at all times to avoid creating further debt.

Gather All Your Debt Information

Begin to assess what debt you have. Gathering all of the data is essential if you wish to take control of your debts and stop them from expanding. 

This can be difficult and of course, it might be difficult to come to terms with what debts you have, but have faith and know that it is possible to be debt free. Ignoring your debts will accumulate to even more debt over time, so nip it in the bud now and gather the information. 

Do not leave a stone unturned, and request a credit report to see exactly what is owed. You might find there is credit on there you have been neglecting.

Seek Financial Advice

To begin the process of working your way through debt, you should seek financial advice. No one is expected to know the best way to manage debt as everyone has unique collections of debt. 

Financial advisors exist to find the best route to alleviating stress as much as possible and guide you through the process of paying things off. Potentially, they will personally speak with your existing creditors to reduce the interest rates. 

Many routes can guide you through, but it is your responsibility to seek the help you need. There is no harm in asking for help.

Consider Consolidation

If you have multiple debts that are weighing down on your current expenses, it might be worth seeking debt consolidation. Less debt means more savings towards your retirement, therefore if you manage to qualify for such consolidation from your debts you will potentially be en route to a faster debt reduction. 

All of your debts will merge into one monthly payment, making the repayments easier to manage. Additionally, if you are looking to potentially write off some of the debts, seeking IVA advice would be beneficial to see if you qualify under your circumstances.

Don’t Panic

Ultimately, debt finds its way into most of our lives, but how we manage it is key to escaping its ruling over our lives. Stressing over the debt you already have will not benefit you, but taking the steps to acknowledge that you can ease debt with the correct action is vital. 

Take your time to calmly work through the process of scaling down your debts. Retirement will be much more enjoyable once you are in the position to enjoy all of your savings and responsibly manage your state pension.

Final Thoughts

If you hope to be debt free by the time you reach your retirement, you should implement all of the recommended steps. Understanding that you are not alone and that we all will have to come to terms with our debts might offer you some comfort. 

Those of us who retire with our debts paid off can live more financially free than others, and you can experience this too.

How to Live Debt Free so You Can Retire with Peace of Mind

Escaping debt can feel like a breath of fresh air. When you are starting to plan for your retirement, one of the best ways for you to prepare is to start mitigating your debt. If you are not sure where to begin, however, following some of these guidelines can be crucial for your future.

Live According to Your Means

Perhaps one of the most obvious and immediate pieces of advice that all individuals should do their best to follow is to reduce their spending. One of the best ways to avoid further debt is to live according to your means. 

Make a list of all of your monthly payments and make sure that they are only things that you need. This means taking a look at your hobbies and seeing where you can afford to reduce your spending.

Look into Immediate Debt Settlement

Bringing experts in to discuss your debt can allow you to get all of your smaller accounts settled as quickly as possible. Basically, a good debt settlement program will allow you to work with expert negotiators to discuss terms with creditors on your behalf. 



They use various negotiation strategies to allow you to pay less on your unsecured debts. These can include credit cards, payday loans and other, smaller unsecured debts based on your situation.

Make Extra Mortgage Payments

Another excellent way to plan ahead for your debt-free future is to try to pay off your mortgage, or car or student loans, as early as possible. This means taking the time to plan out how much money you owe to your lender and pay a little bit extra every month. 

This will allow you to pay off your mortgage sooner and save money in the long-term on your interest payments. Set aside as much as you are comfortable paying on a regular basis.

Set a Goal

Setting goals can be one of the best ways to adjust to your needs. Think about some savings goals that you may have for your future. Do you want to have a certain amount of money saved up before you can retire? Is there a certain degree of debt you want to leave behind before you start planning? Work with financial planning tools to reach your goals faster and easier.

No financial situation is ever the same. Establish a reliable degree of flexibility in your goals in order to see the most efficient results. Always take things at an easy pace to ensure that you are stable during your debt mitigation journey.

Freedom Debt Relief Has A Quick Guide to Stable Finances

Everyone wants to avoid financial stress, especially debt, but it’s so easy for things to get out of control. Between avoiding impulsive purchases, keeping up with bills, and covering surprise expenses, there’s a minefield of potential obstacles to staying on track.

But it needn’t be so hard. The key is to leverage the power of your daily and monthly habits. Over time, small adjustments to your daily spending habits will pay huge dividends. More than preventing yourself from going into debt, you’ll be able to leverage the power of savings.

Freedom Debt Relief deals with plenty of consumers and has seen what happens when things go wrong. To help you make sure things go right, we’ve put together this quick guide.

Budget Differently

You’ve been told to make a budget before, but have you been told how? The problem with most budgets is that they assume that you need to fit your income to your budget.

While, of course, you don’t want to spend more than you earn, you should make your budget based on your whole life, not just your income. Lay out your life goals. Life goals include long-term goals, like retirement savings and short-term goals, like your desired lifestyle. If you want to take a two-week vacation each year, budget for that too. 


By focusing on what you want first, you can decide whether you need to make more money or where you can cut back to make those goals happen. Above all, a budget should set out your priorities so you can see what’s worth spending money on and what you can cut out.

Be Responsible with Credit Cards

Some savings experts will tell you to avoid credit cards altogether. But credit cards are a useful tool. You just have to use them responsibly. Only use your credit cards to pay for things you can afford. 

There are few things worse for your long-term financial health than partial, late, or unpaid credit card payments.Partial payments result in a snowball of interest, while late and unpaid payments ruin your credit score. 

Research credit card offers extensively before you choose to use one. All the information about fees and costs is there. You might have to do some digging to find it, but there’s no excuse for being surprised by a credit card fee.

Change your Shopping Habits

Whether it’s transportation, entertainment or living expenses, you can find ways to save on almost everything. Shop for clothes at second-hand stores when possible. Use promotional offers for outings to movie theaters or restaurants. 

Enroll in loyalty programs to save on groceries and gas. Wait for desired items to go on sale, and only buy certain food when it’s in season.

It may seem like a pain, but once you get in the habit of finding savings on everyday items, it will become second nature. The best part is that all those little savings add up to allow you to save for retirement and plan fun vacations.

Create a System for Bill Payment

Kevin Gallegos, of Freedom Debt Relief, recommends setting up, “a system that works for you and that you’ll use consistently.” Seems pretty simple, right? Yet, so often consumers must pay an overdraft or late fee. Avoiding those sorts of easy-to-avoid expenses is another habit that pays dividends over time.

Find out what works for you. Gallegos says that it could be “automatic online payments, a spreadsheet, a cell phone reminder, or a list on the refrigerator.” All that matters is that it gets you to pay your bills and cash your checks on time.

Map out Long-Term Goals and Review Regularly

“Financial success” is different for everyone. That’s why it’s so important to dedicate some time to figuring out what you want to accomplish and what that’s going to cost. 

No one would jump in a car with only a vague idea of the route to their desired destination and expect to arrive without getting lost. So why would anyone expect an easy road to their financial goals without extensive planning?

Create milestones for your goals so you can figure out when and how much you need to save. Then, review your finances regularly—ideally once a month—to make sure you’re on the right path.

By reviewing your finances, you serve yourself in two ways. First, you’ll be in tune to your spending habits so you can adjust accordingly to stay on track. And second, you can keep track of any discrepancies on your credit card and bank statements.

Most credit card companies have a limitation on when you can dispute a claim. So, even if you have a legitimate claim, you might not be able to work it out if you make the claim too late.

Pay Yourself First

Monthly savings cannot be viewed as anything less than mandatory. Gallegos of Freedom Debt Relief recommends considering additions to your savings as a requirement, rather than a chore. 

Treat it like a required payment to your future retired self who will need financial support. Don’t overextend yourself by paying too much, but find some room in your budget even if it means sacrificing some fun money.

“Know what you have to spend—and spend less”

This last tip comes directly from the Vice President of Freedom Debt Relief. He says that learning to live below your means, “taking responsibility and choosing where your money goes,” could help you immeasurably in avoiding financial trouble.

To use this tip, reevaluate your budget completely. Search for expenses that you can reduce or eliminate and stick to your plan. Err on the side of cutting too much—you can always add subscriptions or memberships that you end up missing. Chances are though, you won’t even notice they’re gone.

Achieving your financial goals is most easily achieved by making small changes to your daily routine. Consistently enact these changes to your spending and savings habits, and you’ll be amazed at the difference small things can make over time.