Financing can make an expensive purchase feel surprisingly manageable, especially when the salesperson redirects your attention from the total price to a comfortable monthly payment. For retirees, however, adding another fixed payment can have consequences that extend well beyond the purchase itself, particularly when much of the household income comes from Social Security, pensions, or planned retirement-account withdrawals. The latest available Federal Reserve consumer credit data also serves as a reminder that Americans continue to carry substantial amounts of consumer debt, making the cost of borrowing an important part of any major buying decision. That does not mean retirees should never borrow money, but some purchases deserve extra scrutiny before signing a financing agreement. If preserving retirement cash flow is the goal, these seven purchases retirees should think twice about financing deserve a closer look.
