Don’t let debt ruin your retirement savings. While planning for retirement, it is essential to pay down debt. Start with paying off your smallest debt first, so that you can start saving more retirement money. Next pay off the debt with the highest compound interest, until you’re back on track.
|Annual Interest Rate|
Months to Pay Off with Current Payment
Months to Pay Off with New Payment
Interest You'll Pay
The less interest you will need to pay.
The quicker you will be debt free.
The more money you will have to spend or save as you see fit.
Compare the interest rate you pay with the rates advertised online, in newspapers, and in magazines. Ask friends and family what they pay.
If you think you are paying too much, get your credit score–your credit score matters. Then find out the interest rates charged for people with scores in your range.
If you can improve your credit score, do that right away!
If you are paying an interest rate that is too high, call your lender and see if you can get a lower rate. Ask to speak with a supervisor if you can’t get anywhere with the first person you speak with.
If you can’t negotiate a lower rate, consider switching lenders.
If you have a hardship, ask your lender or a legitimate credit counselor about:
|Type of Loan||Average Yearly Interest Rate|
Pick the one that makes most sense to you:
DISCLAIMER: The information provided on the Icon website is for educational purposes only. It is NOT intended to provide personal financial advice.