It is imperative to have a healthy portfolio before you retire. However, it may not look as healthy as it should due to a falling economy and downsizing. Many individuals have had to make concessions with their 401(k) plans and pension plans. Moreover, who knows what Social Security will look like a few years or even one year from now.

However, one of the things you can control is how much debt you have going into retirement. There are many tips you can use to minimize and even eliminate debt altogether - even before you retire.

Consolidate Debt

By consolidating debt, you eliminate multiple payments and reduce the accumulation of multiple interest rates. Make sure that you shop around before consolidating credit card debt from one card to another. The terms and agreements are almost always in fine print and you need to know what the penalties, fees, surcharges, and time frame are before signing on the dotted line.

By consolidating debt, you now have the opportunity for one low monthly payment and one interest rate. This will open up the opportunity for you to pay off your credit card debt faster and eventually become credit card free.

Eliminate Future Debt

The only sure-fire way to eliminate future debt is to live within your means. If you purchase something and use the thought process of figuring out how to pay for it later, you are already automatically in the danger zone.

Eliminating future debt is achieved by not creating it in the first place. Take a class on how to budget or attend a budget workshop. Seek the expertise of a financial planner. Do not leave your finances to chance. By learning how to create and stick to a budget, you can guarantee yourself being free of future debt.

Refinance, Home Equity Lines of Credit, Reverse Mortgages

There are many finance-related workshops and seminars that are free of charge, and it would be a wise choice indeed to attend as many of them as you possibly can. This will help you to learn about whether or not it is in your best financial interest to refinance, purchase a home equity line of credit or not, and even the do's and don’ts of a reverse mortgage.

As with everything else, an informed consumer is a wise consumer. When it comes to matters of your money, seeking out wise counsel is the best choice to make. Find estate planners, eldercare attorneys, and other legal professionals who are willing to give you a free one-hour consultation. Gather as much information as you can from these free one-hour sessions before consulting a financial advisor.

Reducing your debt before retiring and learning how not to recreate it are two sure-fire ways to enjoy retirement more with fewer financial woes.