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doesnt matter if its an extra paycheck, a bonus, an inheritance, or a surprise cash gift from your parents - you need to have a plan in debt into retirement can also be dangerous, and in some cases, even more so. When you are in retirement, you are working with a fixed income. The simple truth is, you cant afford to have a majority of your income eaten up by debt payments. To get the most out of your retirement, you need to make sure you have as much money as possible to fund the lifestyle you desire. Here are three types of debt you should work on eliminating before you retire. Read: How To Save For Retirement When You Are Self-Employed UNSECURED DEBT If you are living with a fixed retirement income, you might not be able to afford to make the extra payments on the money owed. If you are spending years in repayment, much of your fixed-income ends up going to high interest payments. Credit card debt can not only wreck your credit score, but its also costly to pay off. For example, if you have a credit card with a $5,000 balance with 18% interest, it will take you roughly 84 months to pay it off. Not only that, but you will pay close to $4,320 in interest over that period. HOW TO PAY IT OFF Its best to come up with a plan to eliminate unsecured debt during your working years. An easy approach to paying off credit card debt is to list out your present debts, figure out which cards charge the most interest and pay those off first before moving on to the ones with less interest. Here is a list of articles that will help you come up with a plan to pay off credit card debt: Pay off Debt With the Debt Snowball Method How to Pay Down Debt Using the Avalanche Method How to Create a Plan to Pay Off Debt Taking advantage of balance transfers to eliminate debt faster might also be an option. You can transfer your total balance to a card with a lower interest rate than what you are currently paying to save time and money on interest payments. Read: Saving Money When You Have Debt – What You Need to Know STUDENT LOAN DEBT Student