Getting out of debt is hard for everyone, but it's especially challenging after you've retired and are living on a fixed income. What's the best way for retirees to handle their debt?
In the following video from The Motley Fool's series on retirement investing, sponsored by TD Ameritrade, Fool consumer finance expert Dayana Yochim talks to Dan Caplinger, the Fool's director of investment planning, about the problem of retiree debt and you can deal with it. The problem Dan focuses on is that retirees have limited flexibility to repay debt because of their fixed incomes. Moreover, as more parents take student loans on behalf of their children, it's more common to still have debt outstanding when you retire. Dan goes through basic guidelines for considering debt, including maximum amounts you should feel comfortable taking as well as how to dig yourself out of a tough situation if you overextend yourself. Dan concludes that even though Social Security benefits can give you some ability to repay debt, it's far from a limitless resource.