Briefing frontwavecu.com
Third Quarter 2022
Minimizing Debt For Retirement
Chipping Away at Debt While doing away with all credit cards may be impractical, reducing your debt will help keep your finances in order and your fixed income more predictable.
annual fees. Also, if the cards include a high interest rate, it’s financially prudent to turn down the prospective rewards and instead look for a card with a lower interest rate. Nurture Your Credit You can receive a lower interest rate on a credit card if your credit score is strong. To improve your rating, pay your bills on time and minimize your debt.
Credit card usage is ubiquitous for Americans. Online purchases are just a click away when paying with a card, while other transactions — car rentals, for instance — require a credit card for both payment and security. Commensurate with credit card usage is carryover debt that accumulates each month, a financial strain for those entering retirement. There are a few key considerations for using a credit card once you’re relying on a fixed monthly income. When living on a fixed income, using a credit card as if it were income may deliver a short-term benefit — i.e., that big ticket item that looked too good to pass up — but it comes at a long- term cost: an inability to sustain your standard of living. While paying for groceries and other necessities is convenient with just a swipe or tap at the register, unless you can pay off the balance each month, you’ll incur a credit card bill that accumulates finance charges each month, making it an increasingly formidable debt to discharge. What to Consider When Considering a Credit Card Not all credit cards are alike. When assessing whether to sign up for a card, consider your intended use. Cards with enticing rewards programs may be appropriate if you’re paying off the balance each month, though these programs typically come with hefty Provided by Kathy L Chesney, CLU ChFC and Leslie Myers, CRC
Kathy and Leslie may be reached at 760.439.6960 or Kathy.Chesney@lpl.com and L.Myers@lpl.com.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. This material was prepared by LPL Financial, LLC. Kathy Chesney and Leslie Myers are registered representatives with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Frontwave Credit Union and Frontwave Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Frontwave Investment Services, and may also be employees of Frontwave Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from atnd not affiliates of Frontwave Credit Union or Frontwave Investment Services. Securities and insurance offered through LPL or its affiliates are:
Not Insured by NCUA or Any Other Government Agency
Not Credit Union Guaranteed
Not Credit Union Deposits or Obligations
May Lose Value
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