I Want to Retire in Two Years But Have Debt


Dear Steve,

I have $110K of credit cards and loans. I wish to retire in 2 years and would like them paid off before I do

My credit score is 724 – which is based on my owing $54,354 in loans and credit.

I have another $54,354 in loans which do not show on my credit report.

$19,258 fidelity loan 4.25% apr I pay $615 p/m
$35,035 BHG LOAN – last payment due 7/20/25 borrowed $63,440 and have been paying $1259 p/m since 8/25/18

The BHG loan is killing me, and I want to pay it off somehow. If I borrow money, that will show on my credit card report. Lowering my rating.

I do not know how to deal with this situation. I don’t think consolidation companies are accepted by BHG.

I need the best solution to rid me of all this debt.



Dear Deb,

First, let me assure you there is a solution here. However, it will probably take some negotiating with yourself and your creditors.

If everything on the wishlist isn’t possible, it is time to order them in priority. For example, is it more important to retire without debt if it lowers your credit score? Or is it more critical to maximize your credit score and delay your retirement?

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

There are several strategies to get you to achieve your top goal. But because of the need to discuss your situation to create the best approach to achieve your primary goal, I think you should talk to Damon Day.

He can help you create and execute a plan to get you where you want to go.

At this point, I’m not convinced that seeking a loan to be out of debt in two years will save you a lot of money. However, the answer is pure math if your burning desire is to be out of debt in two years without impacting your credit score.

All we need to do is figure out what the monthly payment would need to be to accomplish that.

But consider this, are you financially set for retirement with little time left? If not, we need to think about other approaches to radically get you in a better position.

I think the best way to solve this focused problem is by stepping back and taking on a broader view. Don’t get tunnel vision.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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