Too many Americans don’t consider mortgages when they think of the word debt, but it's critical to factor it into your retirement plans.
Fort Lauderdale, FL (PRWEB) March 03, 2015
A recent poll from Bankrate.com focuses on Americans’retirement fears about medical bills and that affluent populations are afraid of running out of money. What was interesting to Consolidated Credit’s President Gary Herman was that “too much debt” was not in the top three reasons cited in the survey, and it may seem that debt isn’t a big concern, since it comes in fourth, but really, all four reasons are debt-related. “For instance, if you can’t pay your medical bills, you end up in serious debt,” says Herman.
The four specific retirement fears cited in the poll in order were:
- Medical bills
- Lack of savings
- Not being able to pay daily expenses
- Too much debt
Herman expresses that mortgage debt may be another worry. “Too many Americans don’t consider mortgages when they think of the word debt. While mortgages are often considered a ‘good’ form of debt, you still need to factor it into your retirement plans,” he continued.
In May 2014 the Consumer Financial Protection Bureau reported that consumers age 65 and older owed larger balances on their mortgages than their 65 and older age cohorts did a decade ago. The median amount owed on mortgages increased 82 percent, from approximately $43,400 to $79,000. Older consumers also owe more on their mortgages in relation to the value of their home than a decade ago.
Herman said the best way to allay retirement fears is to get out of debt now. “Consolidated Credit has helped thousands do that over the past two decades,” he said, “but if people don’t get help here, I hope they get it somewhere.”
About: Consolidated Credit, founded in 1993, is one of the nation's largest credit counseling organizations in the country and has helped over 5 million people with financial issues. Their mission is to assist families in ending financial crisis and solving money management problems through education and professional counseling.