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6 smart ways to tackle expensive debt in retirement
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.
CBS News
Photographing the rooms of kids killed in school shootings
An unmade bed
A library book 12 years overdue
The next day’s outfit
Notes to her future self
Click on the door to enter
CBS News
How do you make a portrait of a child who isn’t there? Photographer Lou Bopp found a way, but it wasn’t easy.
In early 2018, I was deplaning after an 18-hour flight when Steve Hartman called. He had an idea: to photograph the still-intact bedrooms of kids who had been killed in school shootings.
It’s a headful. And six years later, I still don’t have an “elevator pitch” for the project — but then, I don’t often talk about this project. It is by far the most difficult I have ever worked on.
When Steve, my friend of about 25 years, asked me if I would like to be involved, I said yes without hesitation — even though I didn’t think we would get any families to agree. There is no way that I would have said no to partnering with him on this.
Emotionally, I was not sure how I would get through it. Within a few months I was on my way to Parkland, Florida. Alone. I’m not sure that I realized that I would be on my own.
But here I was. An on-location commercial photographer who focuses on people and pets to create compelling, honest, textural and connective moments for large brands, per my LinkedIn professional profile, on a project where there is no one to take photos of — for the most brutal of reasons.
How do you make a portrait of a child who is not there?
In each of these children’s rooms — the most sacred of places for these families — there was the sense that the child had just been there, and was coming right back. It was as if they’d just left their room like that when they went to school in the morning and were returning in the afternoon.
I wanted to capture that essence.
Most kids’ bedrooms are their very own special places, and these were no different. I looked everywhere, without touching anything. I photographed inside trash cans, under beds, behind desks. Their personalities shone through in the smallest of details — hair ties on a doorknob, a toothpaste tube left uncapped, a ripped ticket for a school event — allowing me to uncover glimpses as to who they were.
But there was an emotional challenge in addition to that creative one. Over the course of more than six years, we visited with many families around the country. The parents I spoke with seemed grateful that I was there. But each time I received a call or text from Steve about a new family, my heart sank.
It meant another family had lost a child.
I find it unfathomable that children being killed at school is even an issue. It makes no sense. It’s impossible to process. The night prior to each one of the family visits, I didn’t sleep. And I knew I wouldn’t going into the project. It’s not a self-fulfilling prophecy. It is nerves. And empathy. And sorrow. And fear.
In my notes from early on in the project, back in 2018, writing in seat 6H on the flight back from Nairobi, I reflected on the emotional task ahead.
“This is going to be one of the most difficult things ever, emotionally, for me, and not just work related. As I read my research documents, I get visibly emotional,” I wrote, noting my gratitude that the dark cabin prevented the other passengers from seeing me.
The prospect brought my own fears to the fore, both for myself — “I can’t help thinking about Rose,” my daughter, “and what if. I’ve lost sleep over envisioning the what-ifs well before Parkland” — and about and for meeting the families in the project: “When I read about April & Phillip and Lori’s plight, I somehow, for some reason put myself in their emotional position even though that is impossible, I have no idea, it’s beyond comprehension, I do not know what they feel. I do not know what I am going to say to them, I’m scared beyond belief. And alone.”
But just days later, I was photographing the first assignment for the project: Alyssa Alhadeff’s room. She was just 14 years old when she walked out of that room to head to Marjory Stoneman Douglas High School. I was shaky meeting the family friend who greeted me at the house. Her daughter was Alyssa’s best friend, and a photo of the two girls was on the table.
According to my notes, “The room was a beautiful teenager’s messy room. My emotions were kept in check the way that they usually are; By hiding behind the camera. I removed my shoes before entering. My heart was pounding and it reverberated through my body and soul, I felt like I was in one of the most sacred and special places on Earth. I was so careful not to touch anything.”
I left feeling ready to explode in sadness and anger.
Later that day, I photographed Carmen Schentrup’s room. Her younger sister had survived the Parkland shooting, but 16-year-old Carmen was killed in her AP Psychology class. Meeting her parents, April and Phillip, was what I was most scared of.
“I feel so much pain and compassion for them and I don’t want to say the wrong thing, drop cliches etc.,” I wrote at the time. “I spoke to Steve for guidance. He said, just be you. That’s all I can do. Just be me. He was right, those three words helped carry me through this entire project. Just be me.”
April let me in, and I worked quickly, only meeting Phillip as I was leaving. “The conversation felt like we all three were just trying to hold it together. I cannot imagine what they are going through, my heart hurts for them. This was / is such a painful project, and reconciling it will be impossible.
“I think about how anything can happen at any time to any of us. Literally. You never know,” I wrote.
After only about 16 hours on the ground in Florida, I was done with the first portion. I felt the project was a must, but I also dreaded the next call from Steve about the next family. I didn’t know when that call would come — many years later, or the very next day, possibly never.
But last month, we — and the documentary crew that filmed us working — completed this project. While I haven’t seen it yet, I know Steve’s piece won’t be a typical Steve Hartman segment. How could it be? I know he struggled too, and we both have spent a lot of time processing this.
I remember one August evening, I was devastated as I left the home of one of the families. Within minutes, I passed an ice cream shop crowded with other families — seemingly carefree, full of joy and laughter. The juxtaposition, mere minutes apart, cracked my soul.
I hope some way, somehow, this project can facilitate change — the only possible positive outcome for this I could comprehend. After the news cycle ends, these families will still be living with an incomprehensible nightmare.
CBS News
Standing on the threshold of grief, documenting the bedrooms of kids killed in school shootings
I never wanted to be this kind of reporter, knocking on the door of someone who lost a child in a school shooting. And yet there I stood, knocking, nonetheless.
I found myself here, standing on the threshold of grief across the country, after years of pent-up frustration. By 2018, America’s school shooting epidemic had taken a toll on me. There were so many that the news coverage felt like a treadmill. It seemed to me the country had grown numb and lost its empathy for the victims and the families. I wanted to do something.
For help, I reached out to Lou Bopp, one of the best still photographers in the country. But he said he had never faced a challenge quite like this: “to take a portrait of a person who’s not there.”
On March 27, 2023, Chad and Jada Scruggs lost their daughter, Hallie, in the Covenant School shooting in Nashville. She was 9 years old, the youngest of four, and their only daughter.
Looking back at photos of Hallie, Chad recalled how she loved sports and had “more stitches than any of her brothers.”
“It was just a lot of fun having a daughter,” Jada said.
“We had a chance to have her for 9 and a half years, and that was far better than not having her at all,” Chad said.
But their goodbye isn’t quite complete. They’re still living with her bedroom.
Over the past six years, eight families from five school shootings invited us into these sacred spaces, allowing Americans to see what it’s like to live with an empty child’s bedroom.
We traveled to Uvalde, Texas, where a gunman killed 19 children and two teachers at Robb Elementary School, including 9-year-old Jackie Cazares.
Jackie’s parents Javier and Gloria say people are always telling them that they can’t imagine what they’re going through. But they say we need to imagine, and that’s why they invited us in.
“It just makes everything more real for the public, for the world,” Gloria said. “Her room completely just speaks of who she was.”
In Jackie’s room, we saw the chocolate she saved for a day that never came, evidence of the dream vacation she never got to take, and the pajamas she never wore again.
It struck us how many of the rooms remained virtually untouched, years after the shooting.
Frank and Nancy Blackwell lost their 14-year-old son Dominic in the Saugus High School tragedy near Los Angeles. That was 2019, but inside his room, it felt like it was yesterday.
“We just decided to keep everything as it was from when he last went to school that day,” Frank said. “He didn’t prepare his room to be photographed. He didn’t put away his stuffed animals because he was worried about who might see it. He woke up, he got dressed, and he left to go to school. And he thought he was coming back. And we all expected him to come back.”
So many rooms wait for a child that will never return.
Charlotte Bacon was murdered in Newtown, Connecticut, in 2012, six weeks after Halloween. Her room holds the last library book the 6-year-old checked out, now 12 years overdue.
Luke Hoyer, 15, was killed in Parkland, Florida, on Valentine’s Day in 2018. When we visited his home, his bed was just as he left it.
Alyssa Alhadeff, 14, was also killed in the Parkland shooting. The whirlwind that was her room had fallen still.
Carmen Schentrup was yet another Parkland victim. The watch she got for her 16th birthday still ticks, but the motivational sayings that filled her room resonate no more.
The decision to either keep a room as it was or pack it up and repurpose it tortures many parents.
Bryan and Cindy Muhlberger lost their 15-year-old daughter, Gracie, in the Saugus shooting. They told us they often talk about what to do with her room.
“Because when I do go in there, I feel her presence,” Cindy told us.
Bryan wondered, “And so when that time comes that the room is not there, does she go away?”
I didn’t realize what an albatross the rooms are for some families.
“I will just say I have a pretty confusing relationship with [Hallie’s] room now,” Chad said. It’s extremely painful, but there’s a lot of moments where you want to be sad — because the sadness is a part of connecting with her.”
Hallie’s room also brings them smiles, too, Chad and Jada told us as they showed us a kitty cat hoodie that Hallie wore all the time.
The rooms really are a rainbow of emotion, all at once tender as a lullaby and shocking as a crime scene. Clues gather dust, leading us past all the places these kids had been up until that very moment when everything stopped so suddenly that there wasn’t even time to close the lid on the toothpaste tube.
In the end, we took more than 10,000 photographs. These parents hope that at least one of these pictures will stick with you, that you will forever carry a piece of their pain and use that heartache to stem the tide of all these empty rooms.