When you reach retirement age, you won’t have the same income source anymore. Your lifestyle will drastically change. After living comfortably abroad for many years, this change won’t be easy to deal with. When that time comes, you don’t want to worry about financial issues. If you still have unpaid debts, you have to deal with them. These tips can help.
Face your creditors
Dealing with debts is challenging, especially if you live from payday to payday. You might earn a lot, but you also have lots of bills to pay. If you’re about to retire, and you still have loans to pay, try to talk to your creditors. Negotiate with them to make it easier to repay the loans. You can request the removal of the interest rates. You may also ask for a better repayment schedule. You also don’t want to return home if you have outstanding debts.
Start your lifestyle changes
You have to think as if you no longer have a regular income source. Some monthly expenses might have to go. Focus on what you need most. Another advantage is that when you reach retirement age, you won’t want to make drastic lifestyle changes anymore. When you cut your monthly expenses, you can use more money for loan repayments. If you plan to retire in your home country, try to research the cost of living. You’ve been away for a while, and you need the latest information.
Look at assets you can sell
Over the years, you saved enough money and bought valuable assets. You can sell some of them. You don’t need to keep all your paintings and jewellery. If you can sell them, it’s easier to repay your loans. You also don’t want to bring items purchased overseas back home.
You’re already getting older. It’s not the right time to invest in something that could yield positive results in ten years. Expanding your portfolio or opening a business might not be ideal at this point. If you lost your investment, you would face more problems upon retirement. If you have money to spare for investment, you can use it to pay your debts instead.
Check your retirement fund
Never use your retirement fund for loan repayments. The reason for checking it now is that you want to see if you’re financially ready to retire. You don’t want to repay your existing loans and start borrowing money again. You no longer have an income source, and it’s terrible if you dig more holes by applying for loans.
You have to work hard if you wish to experience financial freedom close to retirement. If possible, avoid borrowing money for things you don’t need. Instead of spending on unnecessary things, you have to keep building your retirement fund. You can also consult with experts who will give you advice on becoming financially stable. Even if you have to pay for their services, it is worth it. Get QROPS advice if you need help regarding your retirement. Many ex-pats didn’t think about retirement, and it led to issues close to their retirement age. You don’t want to be one of them.