--- title: "Retiring with debt: How to pay off debt as a senior " date: 2021-07-12T12:26:53-04:00 canonical_url: "https://grantthorntonlimited.ca/en/debt-help-resources/articles/retiring-with-debt-how-to-pay-off-debt-as-a-senior" section: Articles --- [ Back to the hub ](https://grantthorntonlimited.ca/en/debt-help-resources/articles) # Retiring with debt: How to pay off debt as a senior ![Retired man and woman sitting outside with two pet dogs](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleHero/6438/Retiring-with-debt-how-to-pay-off-debt-as-a-senior.jpg.webp) The dream of retiring stress-free is becoming harder to achieve as more Canadians carry debt into retirement. One in three retirees holds some form of debt. Retiring with debt can make the transition to a fixed, and often lower, income more difficult as once manageable payments, like a mortgage or credit card, can be harder to pay. Cost of living and rising interest rates are also making seniors more reliant on credit to make ends meet – leaving[ 77% of seniors](https://grantthorntonlimited.ca/en/debt-help-resources/articles/price-shock-how-canadians-are-coping-with-the-rising-cost-of-living) feeling generally concerned about meeting their financial obligations. Retirement should be a peaceful and empowering experience after decades of hard work. Just because you’re carrying debt into retirement doesn't mean it’s too late to regain control and find financial freedom. ## Create or review your retirement budget Following a retirement budget is one of the most important things you can do to keep your finances on track. Your budget can be simple, outlining your total monthly income, expected expenses, and variable expenses. When you subtract your expenses from your income, you’ll know how much you have left over for savings, repaying debt, or fun. [Learn how to build a simple budget from scratch](https://grantthorntonlimited.ca/en/debt-help-resources/articles/how-to-make-a-basic-budget-and-stick-to-it). Once you create a budget, review your expenses to find any unnecessary costs that could be reduced or removed. Cutting expenses such as subscriptions, takeout, or entertainment can free up money towards your financial goals. Think about it—reducing your spending by $20/month will put an extra $240/year in your pocket. ## Build a plan for paying down your debt It’s one thing to say you’ll pay down your debt, but you‘re more likely to accomplish something when you establish a plan. One of the best ways to positively change your finances is to set financial goals. Here are two examples of financial goals: **If you’re looking to reduce your credit card debt:** - *‘I will stop using my credit card and pay off its balance of $5,000, plus the interest, by the end of the year’*. **If you’re looking to reduce your expenses:** - *'I will limit the number of times I dine out or get takeout to once a month’.* [Learn how to set realistic financial goals and see more examples.](https://grantthorntonlimited.ca/en/debt-help-resources/articles/setting-financial-goals-7-realistic-examples) Several debt relief strategies that can help you gain control of your finances and reduce how much you owe. When looking to make a change, knowing where to start and what options are available can be difficult. We've pulled together [five of our best DIY strategies to help you pay off debt fast](https://grantthorntonlimited.ca/en/debt-help-resources/articles/pay-off-debt-fast). ## Talk to your bank about lower interest rates Remember that saying, “It doesn’t hurt to ask’”? It also applies when talking with your bank about interest rates and fees. Have an honest conversation with your bank about your current financial situation and what you can afford given your retirement budget. They may work with you to reduce your interest rates so that more of your payment goes toward the principal portion of your debt. If you’re juggling multiple debts, they may allow you to consolidate your debt into one monthly payment. ## Look into formal debt relief options When you’ve tried all other options and are still struggling to make your debt payments, exploring a formal debt relief option such as a consumer proposal may be a good idea. A [consumer proposal](https://grantthorntonlimited.ca/en/consumer-proposal/what-is-a-consumer-proposal) is a formal debt relief solution administered by a Licensed Insolvency Trustee (LIT). This process involves an offer to your creditors to repay a portion of the debt you owe. Once accepted, consumer proposals combine your debt into one fixed and reduced monthly payment. After years of hard work, you deserve a stress-free retirement. Whether you’ve carried debt into your golden years or have accrued debt while living on a fixed income, options are available to relieve your overwhelming debt. To learn more about these options or get started on your debt-free retirement, [reach out to a member of our team](https://grantthorntonlimited.ca/en/get-in-touch/contact-us). We’ve helped many seniors in debt get a financial fresh start before and during their retirement. ## Latest articles [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/67684/assets-CP-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/65155/recreational-vehicle-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [### What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63555/influencer-survey.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [### Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ## Subscribe to our newsletter Get tips and tools to help manage your finances and live debt free. \*I agree to receive communications from Doane Grant Thornton. I understand that I can unsubscribe at any time. ## **Take the first step** to debt freedom Speak to one of our debt solutions professionals during a free, no-obligation consultation. [ Book a free consultation ](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) ## Related articles ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/67684/assets-CP-square.webp) ### [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) In most cases, a consumer proposal allows you to keep all of your assets while bankruptcy may require you to surrender certain non-exempt assets. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) ![Marina filled with sailboats and recreational boats along the Charlottetown waterfront on a sunny day.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/65155/recreational-vehicle-square.webp) ### [ What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) For many Canadians, recreational vehicles offer freedom, adventure, and unforgettable family memories. But if you’ve financed an RV, travel trailer, boat, ATV, snowmobile, or side-by-side, those monthly payments can become difficult to manage if life takes an unexpected turn. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) ![A woman in scrubs sitting on a park bench looking at her phone, with imagery of social media likes and spending surrounding her.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63555/influencer-survey.webp) ### [ Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) While social media may be free to use, the things it influences us to buy often come at a cost. As influencer marketing continues to grow, more Canadians are making purchases based on what they see online. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ![A woman sitting with papers and a calculator in front of her](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63201/cp-annulment-square.webp) ### [ What happens if you miss a consumer proposal payment? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) Missing a payment during your consumer proposal can feel scary—but it’s not the end of the road. This article explains exactly what happens if you miss a consumer proposal payment, how to avoid annulment, and what to do if your consumer proposal is annulled. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) ![A young woman sits with and supports an older woman holding a cane.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleThumbMedium/58677/caregiver-article-square.webp) ### [ Tips to avoid debt as a family caregiver in Canada ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) With the rising cost of living and long waitlists for long-term care, more Canadians are becoming family caregivers, but it can come with an emotional and financial cost. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) ![Person packing a box for moving](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/57664/adult-child-moving-home-square.webp) ### [ How to budget when your adult child moves back home ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) Adult children moving back home isn’t just a trend—it’s quickly becoming the norm. While the cost of living continues to climb across Canada, many Gen Z and millennial Canadians are packing up their apartments and returning to the nest as “boomerang kids.” [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) ![Person looking down at bills with head in hand, surrounded by paperwork and an open laptop.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/56923/utilities-square.webp) ### [ What happens if you don’t pay your utility bills in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada) If you’re worried about unpaid electricity, heating, or water bills, you’re not alone. But disconnection isn’t immediate, and you usually have options to protect your service while you get back on track. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada)