U.S. Consumers who are 60 or older owed over $600 billion in credit cards, auto loans, personal loans and student loans last year. That is an increase of 84% since 2010 which is the largest increase of any age group. This information comes from TransUnion data, one of the biggest credit bureaus in the country. $86 billion of that debt is from student loans.

Many older Americans took out loans to help pay for their children’s college education and are still paying them off. Others took out student loans after the financial crisis in 2008 to retool their skills after losing jobs during the economic downturn.

This information presents a dichotomy or sorts. We hear about how the Baby Boomers are the wealthiest generation, yet we struggle to fund a retirement, so we end up working the rest of our lives in many cases. Compounding matters is the crushing debt that many Boomers face in what are supposed to be the stress-free years of retirement.

With this reality in mind, what are some ways to attack the debt problem when we are 60 or older? Here are five strategies to conquer debt when you are 60:

1. Face the music – this may seem trivial, yet the reality is that many people resign themselves to being in debt for the rest of their lives. That doesn’t have to be the case. First you must come to terms that you have debt and have a desire to eliminate it or pay it down significantly and that you are willing to change the habits that created the debt in the first place.
2. Target high interest debt first – look at the interest rates on the debts that you have and commit to tackling the highest interest debt first while keeping up with the minimum payments on the other debt as well. It can take years to pay off debt by just making the minimum payment. That is why it makes sense to target the highest interest debt first. Once you pay off the highest interest debt then tackle the next highest and so on. By being more strategic in attacking your debt you will pay it off faster and save more interest as well.
3. Look at refinancing options – if you have reasonably good credit you can find a lender that will consolidate your debt at a lower interest rate. That can mean a lower monthly payment and a shorter time frame to pay of your debt. Do your homework to compare interest rates being charged. Also, if you are refinancing student debt keep in mind you will give up some of the perks for federal loans such as repayment plans based on income as well as debt forgiveness programs. Consider this option as a great option to save money over time on interest costs.
4. Pay down your balance as soon as possible – you can do this by making more than the minimum monthly payment each month. Check with your lender and see if your extra payments will go toward interest or principle. Some will apply your extra payment to interest which doesn’t help pay down the debt. You want to have that extra payment pay down the principle. So, call your credit card company or lender and ask them how you can apply extra payments to the principle. Be sure to check that you are not being charged for making extra principle payments. You may be able to avoid the fees by tacking the extra payment onto your monthly payment.
5. Develop a budget – If your debt is due to a lack of a monthly budget then consider starting one. It takes discipline to live within your means. We live in a world of get it now and pay later. That doesn’t work and it wreaks havoc on family life and retirement. Check out my Budgeting That Makes Sense course. It’s free and will give you a guideline to stick to a budget.

Everyone has a reason for accumulating debt. Sometimes it is due to poor budgeting habits while others can’t avoid it due to employment or other family circumstances. Regardless of the reason it doesn’t have to wreck your retirement. Be intentional, have a plan and work your plan each month. Before you know it, you will have made a big dent in your debt and then it will be gone. Once you are debt free you can enjoy your retirement savings and live your retirement on your terms.