Budgeting - Consumer Debt

This is a touchy area for the retiree.  It is good to be in a position of no consumer debt when you retire.  However, over the course of retirement, you may find yourself going into consumer debt for one reason or another.  Remember that mortgage was in the Living Expenses area, not here, due to the fact that you absolutely positively have to pay the mortgage or you will end up losing your home.

Consumer debt includes such items as Advance Pay to pay down debt, any Credit Card debt you have (when you pay off the credit card this can be dropped off).  Auto Loans / Leases for each vehicle.  Any Student Loan payments, Personal Loans from the bank / credit union, and Home Equity Line of Credit / Loans.  These should be based on the full monthly payment (which will include interest payments).

There are also Non-Interest Loans / Layaway Payments which have been secured.  These may include Charge Account payments (non-interest) until a given date, and other consumer debt items (like personal loans from friends / neighbors).