Should you take on more debt in your 50s? Why you should aim to be debt free
Less debt means more retirement savings and more income
Retiring with debt can be a stressful. Every rupee you owe affects your retirement income and depletes your nest egg. To save more for retirement, you have to be debt-free. It's all about striking the correct balance between debt repayment and saving.
Better credit score
You must be constant in your efforts to improve your credit score. Lowering your utilization rate by paying off any existing debt, asking for a new credit card, or requesting a credit line increase on an existing card is the simplest way to enhance your credit score. Making more repayments also means you are reducing your debt. It may have a positive long-term impact on your credit score.
Better mental health and higher self-esteem
Financial constraints can drain you emotionally, negatively impacting your health. Whatever path you pursue toward loan payment and resolution, one advantage is that you will likely experience less stress and anxiety. Lifting a load of debt off your shoulders will provide you with greater financial freedom and discretionary income to enjoy.
Increased security and freedom to work less
Prepaying your loan may provide you with the financial freedom to pursue other endeavours. Whether you've always wanted to travel the world or start your own business, having extra money in your bank account every month will enable you to seek other economic options. Not only will it free up extra cash each month, but it will also provide additional financial security during a housing crisis, allow you to invest more, and may even allow you to pursue ambitions that require further financial support.
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