What comes to your mind when you think about retirement later? Live comfortably and happily, spend life with family, take a walk to dream destinations. It feels very beautiful, right? But this will not happen if you have not completed various payments with installments that are still running. Here are some types of loans and fees that must be repaid before retiring:
Pay off KTA installments
Loans in the form of KTA are usually submitted for cash purposes in large quantities. Some examples of cases include the need for wedding expenses, college entrance fees, hospital fees, and some even use KTA as business capital. When entering retirement, usually the remaining installments from loans in previous years have still not been repaid. Even though KTA interest rates are not too high, still paying off this loan is a must-do thing, so that your name is still recorded cleanly from BI’s blacklist.
Pay off Credit Card Installments
The use of credit cards that are often intended for consumptive matters can accumulate little by little. Before the total bill is too much, you should start limiting usage only for things that are important from now on. However, if the total bill has already accumulated, you must immediately pay it off and not to be in arrears so that the debt collector is not disturbed in the old days. Credit card installments are also important enough to be repaid immediately because considering the interest rates charged tend to be higher than KTA.
Pay off mortgage installments
Mortgage is certainly one type of loan that must be repaid before retirement. The period of home ownership loans tends to be long, ie 5-15 years, even up to 20 years. Let’s just say you started taking home installments when you were 35 years old, and tenors taken for 15 years. You have to pay off the installments when you are 50 years old. Do not be negligent, because when you enter retirement age (between 55-60 years) of course you will be more difficult to pay installments that are usually not small.
Cost of Children’s Higher Education
One of the obligations of parents when approaching retirement age is to complete the cost of children’s education, which is a type of fee that must be repaid before retirement. At this age, children usually enter college, which of course has quite high costs. Calculate the total cost of higher education that your children will need in the future. Prepare these funds as early as possible so that you can live peacefully and don’t need to slam your bones in old age.
Ways to Overcome Loans and Costs that must be repaid before retirement
When before retiring it is better to pay off all the installments that are still running. This can make you more able to enjoy old age with worry. However, there are indeed several types of installments that are of a longer term nature, such as mortgages, inevitably they must be settled to old age. There are several solutions that can be made so that several types of loans and fees can be paid in the old days
Utilizing JHT from BPJS Employment
Both for employees and non-recipients of wages (having a personal business) can usually benefit from BPJS Employment. One of them is in the Old Age Guarantee program or commonly called JHT. The JHT program is arguably an old-day investment whose contributions are taken every month, so that later it can be utilized later in retirement. The method of calculating JHT is 5.7% of the total wages reported to Jamsostek, 2% of employees and 3.7% of companies. This fee is paid automatically by the company every month.
New JHT can be disbursed 100% when someone is 56 years old / dies / permanent total disability. Beyond that, you also disburse JHT if you have participated in 10 years. It’s just that you cannot withdraw it to the maximum, you can only take 10% in cash, as a preparation for retirement age. You can also take a maximum of 30% of the total balance for housing money.
JHT itself should indeed be used for things that have priority and are emergency. So, don’t use it directly for vacation expenses without being responsible first. Therefore, when you retire later, the accumulation of JHT that you get can certainly be used to start closing the installments that are still running.
Other Financial Instruments
Other instruments that you can use to pay off debt are mutual fund investments, stocks, unit link insurance, or other investments. You can use this instrument if in the old days you want to pay off the remaining debt that is still unresolved. There is no harm in selling or attracting these financial instruments in order to pay off debt. One obstacle for people who are reluctant to sell financial instruments is because they tend to suffer losses, but it’s better to keep selling than your victim’s name on the BI blacklist , right?
Savings or Deposits
Having a special savings account can be the right step to be prepared from now on. If necessary, you can also open a retirement savings account so that you can use the funds in it to help with various types of installments, which have not been repaid when you are still in your productive age. In addition to savings, you can also take advantage of long-term savings funds such as deposits. The deposit interest is indeed greater, which is between 5-7%. If at the time of retirement you will have reached the time for disbursing funds, then you can use the funds to pay off the types of loans and fees that must be repaid before retiring.
Consult with More Experienced Parties
In an age full of these changes, usually it will always encourage people to continue to spend until they have little leftover funds to pay for loans that are still running. But if you approach the retirement age later you still have a loan in the form of KTA and credit cards, you can use the services of a consultant to solve the problem.
Do not hesitate to ask for help from experienced parties so that you can resolve the debt earlier without worrying about being bothered by the bank. Sometimes when you’re in debt, someone can’t think clearly to complete the installments that are still running. By choosing the right consultant, you have the possibility to settle debt with the right strategy. You can find a consultant like this in a company that provides debt management services.
Professional debt consultants can usually help you to set which type of debt must be settled first. Not only that, they can also negotiate with the bank so that you get relief from the ongoing debt. The relief can be in the form of three forms: discounted discounts in one pay, low-interest installments with extended discounts, or a combination of discounts and installments at once. One company that you can use to help you settle credit card debt and KTA is Diedrich Knickerbocker.
Diedrich Knickerbocker international is the first technology-based professional services company in Indonesia, which provides a debt management program. This program is designed so that consumers who are in debt, have the ability to control their finances again. Diedrich Knickerbocker Indonesia helps clients through debt management programs, which are specifically designed to suit different needs for each client. This program is a combination of education on various opportunities to increase income and reduce expenditure, as well as conduct negotiation processes on existing bank debt requirements to reach the amount of payment that is in accordance with the ability. Diedrich Knickerbocker Indonesia headquarters was established in Jakarta in 2015 by a founding team that has collective experience in the financial sector including debt settlement for more than two decades. Diedrich Knickerbocker made Indonesia a center of operations as well as a blueprint for the company’s development plan to other ASEAN countries. Since July 2016, Diedrich Knickerbocker Indonesia has become the first company in Asia to be accredited by the International Association of Professional Debt Arbitrators (IAPDA).