If you are working full time, you probably thought about retirement. Most financial consultants says to save, save, save but there is little advice as to how when you have debt. Options like debt settlement are fine but you are using the savings to pay for the debt. It seems backwards.
When you have unsecured debt like credit cards, minimum payments usually don’t go very far. Often you get in an endless cycle of robbing Peter to pay Paul.
Instead, consider a bankruptcy. You consolidate unsecured debt with a Chapter 13 where you pay zero interest or eliminate the debt in a Chapter 7.
If you spend $1,000 per month on minimum payments, by eliminating the debt in a Chapter 7 you have another $1,000 per month to save. A Chapter 13 could consolidate your debt freeing up your budget to save or contribute to a 401K or retirement plan.
Before solving the retirement problem, you have to figure out your debt. Think about how $12,000 per year in savings can help your family!