8 helpful tips to crush debt in time for your retirement

As retirement approaches, one of the most powerful financial moves would be to eliminate your debt. Yes, it is easier said than done, but debt can eat into the cash flow that you’ll need for a comfortable retirement. If you're in your 40s or 50s, it's not too late to get intentional about becoming debt-free.

Did you know?

9.82 million credit-active South Africans are currently struggling to meet their financial obligations and have impaired credit records whilst 17% of the population consider themselves financially stable.

*Source: Insolvency Care, 2025

That’s a scary statistic but with the right plan of action here’s how to get started

Get real about what you owe

You can’t crush what you cannot see. Write down all your debt: credit cards, car loans, personal loans, home loans, and retail accounts and don’t forget to include interest rates and monthly repayment amounts.

Start off by paying the high-interest debt first

Focus on settling your most expensive debt first, like credit cards or unsecured loans. This frees up money faster and reduces the total interest you’ll pay.

Tip: There are 2 ways to do this: Pay off the debt with the highest interest first or start off with the smallest balances for a sure quick win.

Consolidate where it makes sense

If you’re juggling multiple debts with high interest rates, speak to your financial adviser about options available to you like debt consolidation or switching to a more affordable credit facility. But only consolidate if you’re disciplined enough to not take on new debt.

Consider your windfalls towards your debt

Bonuses, tax refunds, or even side hustle income? Why not use a chunk of it to reduce your debt. While it may be tempting to spend, consider investing it to secure the freedom of your financial future.

Perhaps downsize sooner, not later

If you're holding on to a big home or high-end car you don’t need, consider selling and switching to something more affordable. Freeing up this kind of capital could be a game changer for your retirement timeline.

Increase monthly payments

Automate your monthly debt repayments and top them up regularly, even by a few hundred rand. Little increases make a big difference over time, and you can pay it off faster.

Please don’t forget your bond

Your home loan is often your largest debt. If you can, pay extra into your bond monthly. Even the smallest additional amount can cut years off your repayment term and save thousands in interest.

Create a plan and stick to it

Set a realistic timeline and make it your goal to retire completely debt-free. This means no car repayments, credit cards, or loans hanging over you. The benefits include more money to spend or invest, and you get to live off your retirement income financially stress free.