Shortcut Navigation:

Question for the Money Doctors

Question submitted on Aug 24, 2022.


I am about to retire early at age 62 in November 2022, I will be getting a monthly payment of $1020.00 per month, hardly anything that I can survive on but due to an open heart condition I have no other option. I have drained my retirement accounts to $2000 in a roth ira and $60k in savings.

My question is
Should I pay off my $32k credit cards debt or try to buy a s condo for $80k $250hoa,monthly, $450 tax per year, $600 insurance yr

My income from work is $12,000k plus $10,000 retirement.
I do not know for how long I can continue working do to my health.
Should i go bankrupt?
I am presently paying $1000 in credit cards and $1010 in rent
Single and have a 2010 mazda worth $3500
I need a transportation vehicle to work. Paying $65 in insurance for old car

Looking at all future expenses and rental prices going up it is difficult to stay in a rental.

Credit is 620 do to amount owed, no late payments
Please help!


Sorry to hear about your health situation.  

Filing bankruptcy is a big decision that has many implications and unfortunately you will have little control over your financial situation at that point.   Accordingly, be cautious about making this decision.

When you file bankruptcy, you put yourself into the hands of the bankruptcy trustee who will make all your financial decisions for you.   You may not agree with what they are doing.

Let's go over your situation as you laid out:

1.  Credit card debt.   Do not add to it.   Call the credit card companies to see if they would reduce the interest rate or freeze the cards.  This will allow you to pay down the credit cards sooner.

2.  Trying to buy a condo.   You will need a down payment of at least 20% which is $16,000.  You need to talk to a bank if you would qualify for a mortgage.

3.  Keep working as long as you can.  By claiming Social Security early, you will be taking a permanent discount of at least 30%.   If you keep working, your Social Security benefit will increase.   Have a serious talk with your doctor about your life expectancy.  If you have a short life expectancy, then take the Social Security early, however, if you are going to live a normal life expectancy, you would want a higher Social Security payment.

4. Health insurance - you do not qualify for Medicare until Age 65.  Therefore, you will need to factor in the cost of health insurance if you decide to retire now.

Good luck!

For additional information visit //