Many shoppers are familiar with the stress of paying for presents each year during the holiday season. In recent years, the day after Thanksgiving, also known as Black Friday, has come to remedy the concerns about holiday spending as hundreds of stores offer highly discounted products and promote Black Friday sales on this day.
According to Deloitte, one-third of shoppers on this day plan to use credit cards to stretch their holiday budget in order to take advantage of Black Friday sales. While stretching the holiday budget using credit cards may have worked in past years, 2022’s high inflation has left many shoppers questioning their ability to resurface after the holidays are over. If money is feeling extra tight this year—you are not alone.
One demographic in particular who is often hit the hardest is retirees. Not only do people in retirement live on a limited income, but they also tend to have more family members to support during the holidays. Children, grandchildren, and new in-laws all may have entered the picture this year, but you still want to give your family a holiday to remember.
Instead of relying on Black Friday deals to get you through the holiday, consider addressing the source of the problem: poor cash flow. Many senior homeowners have opted for a reverse mortgage to resolve cash flow issues exacerbated by the holiday season. Homeowners who qualify for a reverse mortgage can access cash using their home equity.
A reverse mortgage can be a useful tool to sustain your retirement lifestyle when you overextend during the holiday months. Consider catching up on your credit card bills with a reverse mortgage. Even smart shoppers, who spend within their shopping budget, may benefit from the program by creating a safety net for unexpected costs or emergencies. You may be dealing with stress if you are “living life on the edge” regarding your finances.
Looking for more information about your options? Download a free reverse mortgage toolkit.