What are your retirement dreams? While your list may be long, it surely does not include spending time worrying about credit card debt. Yet that's just what many retirees are doing--and what may be in store for you or a loved one--thanks to economic factors that are making it harder and harder for older Americans to make ends meet. Credit cards have become an expensive solution to the challenges of a fixed income, lagging investments, and rising medical and living expenses.

To help stay clear of credit card debt:

  • DO pay off your credit card debt before you retire and say goodbye to a steady paycheck.
  • DO pay for essentials such as rent or mortgage, food, utilities, transportation, and prescriptions before sending money to credit card companies.
  • DO understand your rights under the Fair Debt Collection Practices Act (ftc.gov).
  • DON'T pay off a big credit card bill by pulling money out of a tax-deferred retirement account. You may have to pay taxes on the withdrawal, which could turn a $15,000 debt into a $20,000 expense.
  • DON'T even think about buying big-ticket gifts for the kids and grandkids until you're debt-free.
  • DON'T wait until your finances are out of control before you seek help. Desperation makes you vulnerable to home-equity scams and predatory lending practices.

And, as always, talk to us at Sun Federal CU for ideas about ways to make the most of your financial resources. 

Copyright 2008-2014 Credit Union National Association Inc. Information subject to change without notice. All other rights reserved.
-------------------------------------
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members.

Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution.

*CBSI representatives are not tax planners. For questions regarding you specific tax situation, please consult a tax professional.

FR-1087626.1-1214-0117
-------------------------------------
Advisory services offered through Capital Analysts, Inc. or Lincoln Investment Planning, Inc. Registered Investment Advisors. Securities offered through Lincoln Investment Planning, Inc., Broker/Dealer, Member FINRA/SIPC. www.lincolninvestment.com.

Simone Zajac Wealth Management, Sun Federal Credit Union and the above firms are independent, non-affiliated entities.

Simone Zajac Wealth Management Group, 1735 Market Street, Suite C-16, Philadelphia PA 19103

#69876