Latest news with #NataliaBrown
Yahoo
3 days ago
- Business
- Yahoo
5 Reasons You Should Pay Off All Debts Before Retirement If You Can
Debt is becoming an increasingly common burden for older Americans. According to a Lending Tree report, more than 97% of adults aged 66 to 71 carry non-mortgage debt. In addition, older residents in the nation's largest cities have a median debt balance of $11,349. Read More: Find Out: This financial strain is prompting many to delay retirement, draw down savings prematurely, and experience heightened stress. Here are five reasons you should pay off all debts before retirement if you can. Carrying debt can drastically postpone retirement and force many Americans to work far longer than they planned. A National Debt Relief survey found that 67% of non-retired respondents said they 'definitely' don't have enough saved to live comfortably in retirement and needed an average of 12 more years to reach their savings goals. 'Our findings reveal a troubling reality: Our nation's growing consumer debt epidemic has left millions of older Americans feeling stressed about their debt, which has considerable impacts on their ability to build a comfortable financial future and their ability to retire,' said Natalia Brown, the organization's chief compliance and consumer affairs officer. Be Aware: For many older adults, carrying debt makes it difficult to save enough for a stable retirement. Nearly half (49%) of respondents in the National Debt Relief survey reported having less than $20,000 saved, and 22% had saved nothing at all. 'Carrying debt into retirement can quietly eat away at everything you've built,' said Bert Hofhuis, entrepreneur and founder of Banking Times. 'You've likely spent decades saving, budgeting and investing, only to see loan repayments or credit cards continue pulling money from your pocket when you're no longer earning a steady income. 'When you're debt-free, your pension or drawdown can go directly toward your needs, experiences or even helping family, rather than servicing interest. I've seen people sleep better just knowing no one's waiting at the end of the month to be paid back.' Debt doesn't pause when the markets dip. Retirees who carry debt may need to withdraw more aggressively from their pension or retirement accounts to meet monthly obligations. 'That puts pressure on your portfolio and can shorten how long it lasts,' Hofhuis said. 'In some cases, people trigger large taxable withdrawals to make lump-sum repayments, and that throws off their income plan. 'Debt repayments don't adjust based on how the markets perform, so if there's a dip in your investments, you're still expected to meet the same monthly commitments. It can trap you in a corner, where you're forced to make poor financial decisions just to keep up.' Retirement often brings a psychological shift in spending that can be worsened by debt. Mark Zagurski, director, strategy and communications at Mutual of Omaha Advisors, said that while some studies suggest retirees spend more at the beginning and end of retirement, debt affects their mindset. 'Many retirees become more price-conscious when they stop earning an income and start relying on savings,' Zagurski said. 'This can lead to cautious spending, and in some cases, underspending, even when it's not necessary. 'Carrying debt into retirement can make your finances feel tight at a time when you want to relax and enjoy life. High-interest debt can grow quickly, making it tough to keep up with payments. That could mean cutting back on things you enjoy or even selling assets to stay afloat.' Carrying debt into retirement reduces one's ability to adapt when life throws a curveball. 'Retirement isn't as fixed as people imagine,' Hofhuis said. 'Expenses pop up, whether it's healthcare, home repairs or helping grandchildren. If you're locked into repayments, there's less room to adapt.' Debt also adds emotional strain that often goes unspoken. 'I've worked with retirees who felt ashamed about their balances and kept it hidden from family,' Hofhuis said. 'It affected their well-being, not just their finances. If something unexpected happens, like a medical cost or a family emergency, and your money's tied up in loan repayments, you don't have many good options.' More From GOBankingRates These 10 Used Cars Will Last Longer Than an Average New Vehicle 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on 5 Reasons You Should Pay Off All Debts Before Retirement If You Can
Yahoo
12-05-2025
- Health
- Yahoo
More Painful Than Combat: 91% of Veterans Say Debt Worsens PTSD In a New Study from National Debt Relief
Three-quarters of Younger Veterans with Debt are Still Paying off Amounts Incurred While Serving NEW YORK, May 12, 2025 /PRNewswire/ -- National Debt Relief, the industry leader in debt settlement known for its unique approach to debt relief, today released the findings of a powerful new study revealing that many U.S. veterans face mounting debt, financial instability and emotional strain as they transition to civilian life. Conducted in partnership with Wakefield Research, the study polled 1,000 U.S. veterans ages 21 and older who are no longer in military service, offering a sobering look at the challenges faced after service. According to the findings, 91% of veterans who have completed their service believe debt can worsen military-related PTSD, an impact personally experienced by more than one-third (34%) of younger veterans. The survey also revealed that nearly 4 in 10 veterans (37%) face constant stress over paying bills, which rises sharply to 51% among Gen Z and Millennial veterans. "For many veterans, debt has become another battle to fight. When savings are low and debt tops $10,000 or more, even small setbacks can become overwhelming, especially when already carrying the invisible wounds of service," said Natalia Brown, Chief Compliance and Consumer Affairs Officer, National Debt Relief. "We see debt is weighing heavily on those who've served, especially in younger veterans, and many veterans may not realize there are solutions and support available to ease financial worry, giving veterans a clearer path to stability and independence from debt." Other key findings from the survey include: The majority of veterans have some type of debt (90%) 72% carry credit card debt – a third of those with credit card or personal loan debt owe $10,000 or more Medical bills are a source of current debt for 30% of veterans, including 44% of Gen Z / Millennials veterans Veterans who hold medical debt are more likely than others to feel afraid, overwhelmed or confused at the thought of paying off their unsecured debt (35%, compared to 22% of all veterans) Nearly a quarter of veterans (23%) have no money in savings at all 78% are concerned about their financial or job situation due to the current economic landscape – this concern increases among Gen Z and Millennial veterans (86%) While all veterans confront post-service struggles, the burden is hefty for younger generations. Among Gen Z and Millennial veterans, 77% of those with debt are still repaying amounts incurred during active duty, over half (54%) have worked longer hours than they'd like to stay afloat, and one in three (33%) are skipping meals or eating less because they can't afford enough food due to debt. "I've walked this road—both my wife and I served, and we know what it's like to face financial uncertainty after active duty," said Phillip Easton, Managing Director, The American College of Financial Services' Center for Military and Veterans Affairs. "This survey puts numbers to what so many veterans are quietly enduring: living paycheck to paycheck, struggling to find and build a career after service, and sometimes skipping meals just to make ends meet. But it's not just about dollars and cents—it's about dignity. Financial instability can take a toll on a veteran's confidence and sense of worth. Financial literacy and support to build financial health must be recognized as core pillars of a successful transition, not afterthoughts once the uniform comes off." Without the right resources, even the most resilient veterans can struggle to regain their footing. Many Gen Z and Millennial veterans leave service without the financial knowledge or support they need. For 43% of Gen Z and Millennial veterans, it took six months or more to find a job after leaving the military, and 28% admitted they didn't know how to manage their finances in those crucial first few months. These types of financial challenges can quickly snowball into high-interest debt, missed bills, and lost opportunities—fueling a cycle that's difficult to escape. "Debt isn't just a financial issue—it's an emotional and psychological weight," added Brown. "At National Debt Relief, we're committed to helping veterans build financial resiliency through trusted support and proven solutions, like debt settlement, so no one has to face these challenges alone." Debt settlement is an option for anyone with more than $7,500 in unsecured debt, like credit card debt, medical debt, personal loan debt or business debt. The National Debt Relief debt settlement program allows clients to get out of debt more quickly than minimum payments, avoid bankruptcy, and pay less than what they originally owe in manageable payments that fit their budget. Learn more at or call 1-800-718-0487 for a no obligation, free consultation with a certified debt specialist today. About National Debt ReliefNational Debt Relief is redefining the debt settlement journey. Our Whole Human Finance™ approach empowers, supports and guides our clients as they transform their lives by reclaiming their financial health and independence. As an accredited BBB A+ business and named the top-rated debt settlement company in 2023 and 2024 by Forbes Advisor, National Debt Relief has been recognized since 2009 for its human-centric approach to helping clients achieve financial wellness, and for helping hundreds of thousands of people resolve their debt and rediscover their whole selves. For more information, please visit View original content to download multimedia: SOURCE National Debt Relief Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
10-05-2025
- Business
- Business Insider
I was $55,000 in debt 2 years ago. Thanks to debt relief, I've cut more than $12,000 off that bill so far.
After losing my full-time job in 2023, my savings were nearly gone, and I found myself relying on credit cards to stay afloat. I needed stable income, not more financial setbacks. Five months later, I finally got back to work, but the damage was done. I had defaulted on almost everything except my mortgage and utilities. My credit score had tanked, collections calls were constant, and I couldn't see a way out. It felt like I was back in the late '90s, struggling with the debt that came with the financial mistakes of my early 20s. Back then, a debt relief program helped me reduce what I owed and set up payments I could actually manage. It worked once, so I figured it might work again. Debt relief comes with risk, but it can be valuable Debt relief programs help you settle unsecured debts — like credit cards, medical bills, or personal loans — for less than you owe. They negotiate with your creditors and set up a payment plan that fits your budget, so you can stop struggling with high interest and minimum payments. Natalia Brown, chief compliance and consumer affairs officer for National Debt Relief, says, "Debt settlement is often worth considering for individuals with $7,500 or more in unsecured debt who are struggling to make minimum payments and facing compounding interest that could take years to pay off." When you work with a debt relief program, you essentially hand over your delinquent accounts for them to handle. This comes with some risk, as you'll be asked to stop making any payments to creditors, go into default, and do some short-term damage to your credit score. It can also leave you open to possible legal action from your creditors, all of which the Consumer Financial Protection Bureau warns against. However, a reputable program will step in to manage the situation by fielding collections calls and responding to legal actions on your behalf (if you're working with a law firm like I am). Not every account is always able to be settled. Creditors may refuse to work with the company, or only some debts may end up being settled, which can leave you liable for the rest, often with added charges. Even if some of your debts are settled, the accumulated fees and penalties on any remaining balances may offset any savings. It all depends on your situation. There are also tax implications to consider. Forgiven debt can be seen as income that is subject to federal taxes. I found this out the hard way when I received two Form 1099-C: Cancellation of Debt for some of the accounts I had settled and paid off in 2024. Why I chose to go with a debt relief program When I was considering whether debt relief was the right move, I wanted to know how much I could actually save and what the long-term effects on my financial health would be. The company I went with told me they are often able to settle debts for 50% less than what's owed, oftentimes for more. They made no guarantees, were upfront and transparent about any and all fees that would be charged, gave me access to a client portal that allows me to track where every dollar goes, and also provided extensive customer support to address any questions or issues I might have. I factored in all of this, plus any potential risks to my long-term credit score, when deciding if debt relief made financial sense for me. According to the American Association for Debt Resolution, consumers save an average of 32% on settled debt. Including fees, my savings were estimated to be around that amount. Given this, the fact that my credit was already damaged, and most of my accounts were charged off, enrolling in a debt relief program serviced through a law firm made sense for getting my situation under control. Compare debt relief options I'm saving over $12,000 Seventeen months into my program, the law firm I work with has negotiated about $25,700 of my $55,000 of debt I enrolled with to about $13,400 in settlements — a 52% reduction in what I owed. To keep my monthly payments manageable, I have to wait for the current settlements to be paid off before they can move forward with the rest of my creditors. This lengthens the amount of time I'll spend in the program, but doesn't add to the fees and keeps my payments affordable. I have had good experiences with debt relief programs so far. The first one I completed in my 20s enabled me to manage my finances and repair my credit completely over time. This second time around, I've seen my credit score improve by 150 points already and have seen substantial savings. I am at a point where I am ready to sell my house and pay off all my debt to be done with it once and for all. But if I didn't have that option, I would see the program through to the end. Is debt relief the right choice for your situation? That all depends on your situation, goals, and financial situation.
