Mar 2023
2 mins read

Should you take on more debt in your 50s? Why you should aim to be debt free

If you can manage to rid yourself of debt by age 50, you'll be setting the stage for a financially healthy retirement. If you manage to pay off by then, you'll have several years to put your savings to your retirement funds, laying the groundwork for a comfortable life once you quit working. By the age of 50 it is ideal to be debt-free, and your retirement savings should be enough to give you a comfortable life. 

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.

point 1

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.

point 2

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.

point 3

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.

point 4
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