CBS News
6 smart ways to tackle expensive debt in retirement
Getty Images
Retirement is a time to savor the fruits of your labor, but if you’re facing looming debt, it can cast a shadow on your golden years. And, if that debt comes with a high interest rate, the costs can compound quickly — especially if you haven’t budgeted to pay it off in full as part of your retirement plan.
But debt doesn’t necessarily have to feel overwhelming simply because you’re retired or on a fixed income. While you may not be earning regular income from a full-time job, there are still ways to rid yourself of expensive debt during retirement, saving you time, money and lessening the stress during your later years.
That said, tackling expensive debt in retirement requires strategic planning and a thoughtful approach. To help you get started, we compiled a few smart ways you can better manage your expensive debt during your retirement years.
Learn more about how a home equity loan could help you pay off debt during retirement.
6 smart ways to tackle expensive debt in retirement
If you’re struggling to pay off high-interest debt during retirement, the following strategies may be worth considering:
Use a home equity loan to pay off debt
One effective strategy for managing expensive debt in retirement involves tapping into your home equity. Home equity is the difference between the current market value of your home and the outstanding mortgage balance. One common way to do that is through a home equity loan.
A home equity loan allows you to borrow a lump sum of money against the equity in your home, which you then repay over a fixed term with a fixed interest rate. This can be a sensible option if you have a specific debt with a high interest rate, such as credit card debt.
By consolidating these high-interest debts into a lower-interest home equity loan, you can reduce your overall interest payments and simplify your monthly financial obligations. And, considering that home equity loans typically come with much lower interest rates compared to credit cards or other types of loan products, it can be a smart way to reduce the cost of your high-interest debt in retirement.
Explore your best home equity loan options online today.
Harness the power of a home equity line of credit
Another way to tap into your home’s equity during retirement is with a home equity line of credit (HELOC). A HELOC is a flexible borrowing option that lets you access funds as needed, up to a predetermined credit limit.
With a HELOC, you can draw funds, repay them and then use the available credit again, much like a credit card. This flexibility can be advantageous for managing variable expenses, such as medical bills or home repairs. However, it’s crucial to manage a HELOC responsibly to avoid the risk of accumulating additional debt — and since the rates on HELOCs are variable, it’s important to understand how rate changes could impact what you owe in the future.
Consider taking advantage of a reverse mortgage
A reverse mortgage is a financial tool available to homeowners aged 62 and older that allows them to convert a portion of their home equity into tax-free income. Unlike traditional mortgages, a reverse mortgage does not require monthly repayments. Instead, the loan is repaid when the homeowner sells the home, moves out or passes away.
This can provide a steady stream of income in retirement, which can be used to pay off existing debts, cover living expenses or fund other financial needs. However, the reverse mortgage loan requirements and rules are unique, so it’s vital that you understand all of the risks and benefits before paying off your debt in retirement using this type of loan.
Downsize for debt relief
You may also want to consider the possibility of downsizing your home to free up cash and reduce expenses in retirement. Selling a larger home can provide a significant lump sum that can be used to pay off existing debts or fund your retirement lifestyle. And, moving to a smaller, more cost-effective residence can lower your monthly living expenses. This, in turn, can help to further stretch your retirement savings.
Explore part-time work in retirement
Exploring part-time work opportunities during retirement can be another excellent way to generate additional income to tackle debt. Whether it’s a consulting gig, freelance work or a part-time job in a field you enjoy, the extra income can make a significant impact on your ability to pay down debts.
Be mindful, though, of your overall well-being and choose work that aligns with your interests but won’t compromise the relaxation and enjoyment retirement is meant to bring.
Seek professional advice
Navigating the complexities of debt management during retirement can be challenging, and seeking the guidance of a financial advisor can, in turn, be a wise decision. An experienced advisor can help you create a personalized debt repayment plan, optimize your investment portfolio and ensure that your retirement funds are used efficiently.
The bottom line
Tackling expensive debt during retirement requires a combination of careful planning and strategic decision-making. Leveraging home equity through a home equity loan or line of credit, exploring a reverse mortgage, downsizing, exploring part-time work and seeking professional advice are just a few strategies that can contribute to a financially secure retirement. By adopting a proactive approach, you may be better prepared to enjoy your retirement years with peace of mind and financial stability.
Former President Donald Trump meandered Saturday through a list of grievances against Vice President Kamala Harris and other issues during an event intended to link his Democratic opponent to illegal border crossings.
A day after Harris discussed immigration at the U.S.-Mexico border, Trump spoke to a crowd in Prairie du Chien, Wisconsin, about immigration. He blamed Harris for migrants committing crimes after entering the U.S. illegally, alleging she was responsible for “erasing our border.”
“I will liberate Wisconsin from the mass migrant invasion,” he said. “We’re going to liberate the country.”
The Republican nominee also intensified his personal attacks against Harris, insulting her as “mentally impaired” and a “disaster.”
“Joe Biden became mentally impaired,” Trump said. “Kamala was born that way. She was born that way. And if you think about it, only a mentally disabled person could have allowed this to happen to our country. Anybody would know this.”
The personal attacks have been something of a trend for Trump since Harris entered the race. In July, Trump falsely questioned Harris’ racial identity during a panel with the National Association of Black Journalists.
“I didn’t know she was Black until a number of years ago when she happened to turn Black and now she wants to be known as Black,” Trump said at the time. “So I don’t know, is she Indian, or is she Black?”
When asked in an interview with CBS News last month if he believes the personal attacks will hurt him with voters, he responded, “No, I don’t think so.”
Trump, meanwhile, hopes frustration over illegal immigration will translate to votes in Wisconsin and other crucial swing states. The Republican nominee has denounced people who cross the U.S.-Mexico border as “poisoning the blood of the country” and vowed to stage the largest deportation operation in American history if elected. And polls show Americans believe Trump would do a better job than Harris on handling immigration.
Trump shifted from topic to topic so quickly that it was hard to keep track of what he meant at times. He talked about the two assassination attempts against him and blamed the U.S. Secret Service for not being able to hold a large outdoor rally instead of an event in a smaller indoor space. But he also offered asides about climate change, Harris’ father, how his beach body was better than President Biden’s, and a fly that was buzzing near him.
“I wonder where the fly came from,” he said. “Two years ago, I wouldn’t have had a fly up here. You’re changing rapidly. But we can’t take it any longer. We can’t take it any longer.”
Trump repeatedly brought up Harris’ Friday event in Douglas, Arizona, where she announced a push to further restrict asylum claims beyond Biden’s executive order announced earlier this year. Harris denounced Trump’s handling of the border while president and his opposing a bipartisan border package earlier this year, saying Trump “prefers to run on a problem instead of fixing a problem.”
“I had to sit there and listen” to Harris last night Trump said, eliciting cheers. “And who puts it on? Fox News. They should not be allowed to put it on. It’s all lies. Everything she says is lies.”
Trump professed not to understand what Harris meant when she said he was responsible for taking children from their parents. Under his administration, border agents separated children from their parents at the U.S.-Mexico border in a policy that was condemned globally as inhumane and one that Trump himself ended under pressure from his own party.
Harris, at a rally in San Francisco, told supporters there were “two very different visions for our nation” and voters see it “every day on the campaign trail.”
“Donald Trump is the same old tired show,” she said. “The same tired playbook we have heard for years.”
She said Trump was “a very unserious man.”
“However the consequences of putting him back in the White House are extremely serious,” she said.
The Harris campaign Saturday again challenged Trump to a second debate, this time in the form of a football-themed television ad. Following his Wisconsin rally, Trump traveled to Tuscaloosa, Alabama, to attend the Alabama-Georgia football game Saturday evening, and the Harris campaign premiered the ad during the game.
“Champions know its anytime, anyplace, but losers, they whine and waffle,” the ad’s narrator said.
Kendy Howard was found dead in her bathtub. While dispatched as a suicide, clues at the scene made Kootenai County authorities suspicious. Here’s a look at the case:
A 26-year marriage
Brian Wilkins
Dan and Kendy Howard had been married since 1994. By 2021, Dan Howard had gone from working as an Idaho State Trooper to working in the Alaskan oil fields for three weeks at a time.
Kendy seeks divorce
Brian Wilkins
On Jan. 28, 2021, just five days before she died, Kendy Howard picked Dan Howard up from the airport and told him she wanted a divorce. She described Dan’s reaction to a friend as having been “not good.”
Dan Howard’s call to 911
Kootenai County Prosecuting Attorney
On the night of Feb. 2, 2021, at 10:43 p.m., Dan Howard called 911, screaming Kendy had shot herself. “She’s in the bathtub dead …”
The call was dispatched as a suicide.
Dan Howard at the scene
Kootenai County District Court
Kootenai County Sheriff’s Deputy Miranda Thomas was one of the first officers to arrive. Thomas said she witnessed Dan Howard screaming, crying and gagging.
Kendy Howard found in the bathtub
Kootenai County Sheriff’s Office
Caption: Kendy Howard was found dead, naked in the bathtub of her home, with a gunshot wound to her head. Kendy’s gun was submerged in the bathwater.
A packed duffle bag
Kootenai County Sheriff’s Office
Thomas noticed a duffle bag with what she said seemed to be women’s clothing packed inside.
A clue on the dryer
Kootenai County District Court
Kootenai County Sheriff’s Detective Jerry Northrup said that in the dryer he observed “bathmats and towels … and they were still somewhat warm,” which he said led him to question when the cycle had been started.
How did Kendy Howard really die?
Kootenai County Sheriff’s Office
Kendy Howard’s gun was found in the bathtub. Investigators said they would have expected to see a lot more blood in the bathtub if she had been alive when she was shot.
Kendy’s daughter accuses Dan Howard
CBS News
When Dan Howard called his stepdaughter Brooke Wilkins with the news of Kendy’s death, investigators said they could overhear Wi accuse Dan of killing her mother. Despite their suspicions, detectives said there was not enough evidence at the scene to arrest Dan.
Dan Howard arrested
Kootenai County Sheriff’s Office
It took two years for prosecutors to build their case. In July, 2023, Dan Howard was arrested and charged with Kendy Howard’s murder.
Dan Howard on trial
Pool
On March 4, 2024, the trial of Dan Howard began. The prosecution claimed Dan had killed Kendy by putting her in a carotid restraint hold – a maneuver he had learned in his law enforcement training. The defense maintained that Kendy’s death was a suicide. After 10 days of testimony, 62 witnesses, and just over eight hours of deliberations, a verdict was reached.
Dan Howard found guilty
On March 19, 2024, the jury found Dan Howard guilty of second-degree murder and domestic battery.
Life in prison
Pool
At Dan Howard’s sentencing hearing in May 2024, Judge Lamont Berecz told him, “You killed a mother. You killed a grandmother. You killed a sister … You snuffed that out because of your own pride, greed, and anger.” Dan Howard was sentenced to life in prison without the possibility of parole.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
