It is no secret that dealing with substantial amounts of debt can be a harrowing experience. For individuals in Maryland who are closing in on retirement, financial struggles could pose a significant threat to future plans. Those who are facing similar issues might find it advisable to speak with a consumer bankruptcy attorney for guidance on the potential risks of dealing with debts late in life and the available options with which to pursue relief.
According to a recent survey, more than 80 percent of workers who are closing in on retirement age are carrying some form of debt. Although their financial concerns may take numerous forms, the most common issues they face pertain to mortgages, auto loans and credit card bills. In addition to the stress involved with dealing with high amounts of debt, those who face significant monetary burdens could be less capable of saving for life after retirement.
As accounts fall behind and balances continue to rise, one may also be tempted to dip into retirement savings to get by. Unfortunately, a similar action could have consequences that can affect a person’s future. For instance, while a person could borrow from a 401(k) to help cover financial needs, if one cannot pay back the amount within a certain period, he or she could be facing substantial tax fees or early withdrawal penalties.
There are numerous ways that overwhelming monetary concerns could affect a person’s retirement plans. Those who wish to safeguard their financial futures could consider speaking with a consumer bankruptcy attorney for advice on all their available options. An attorney in Maryland can address all a client’s concerns and assist in forming a strategy with which to reduce or eliminate debts and enter retirement with peace of mind.
Source: Forbes, “Don’t Let Debt Sabotage Your Retirement”, Catherine Collinson, April 30, 2018