Dave Ramsey Would Pay These 5 Debts Off. Some Seniors Shouldn't Rush

Many retirees may aim to pay off every single bill, but that blanket approach isn't always the wisest. As you head toward or enter retirement, keeping certain debts may be strategically better than rushing to eliminate them. Some loans offer low rates, protective benefits, or don't cost much to maintain. This could mean that if you crush your debt too early, you may harm your cash flow or nest egg.

Let's explore five debt types some advisors say seniors can consider keeping, even though Dave Ramsey, known for his debt-free plan, would tell you to pay them off.

Ramsey's plan calls for paying off your home early once you're already investing 15% of your income for retirement. But when your mortgage rate is below inflation and payments fit your budget, some advisors say keeping the mortgage can make sense.

You'll still make a financial return if you have investments that average higher returns than the interest you owe on a low-rate mortgage. But if eliminating debt means dipping into retirement savings or losing liquidity, it may be smarter to leave the mortgage untouched and let time work in your favor.

Seniors with low income or on a fixed budget may qualify for low monthly payments through income-driven repayment (IDR) plans. Under Income-Based Repayment (IBR), any remaining balance can be forgiven after 20 or 25 years. Under the new Repayment Assistance Plan (RAP), which launched July 1, 2026, forgiveness takes 30 years. And starting in 2026, forgiven balances generally count as taxable income.

Ramsey generally discourages IDR plans for dragging out debt since they may prevent you from reaching your financial goals and hinder your progress. However, in retirement, this option can ease cash flow without hurting credit and may let loan forgiveness do the work for you.

With most states setting a limit of six years or less, and some allowing 10 years or longer, creditors eventually lose the right to sue you over old debts. However, collectors can still contact you and ask for payment, and the statute of limitations is separate from how long a debt can stay on your credit report. Making a payment can also restart the clock.

Ramsey takes a firm line here. He has said you should still pay old debts even after the statute of limitations runs out, because you still owe the money.

Approved for adults 62 and older, reverse mortgages let you access home equity without making monthly mortgage payments. The loan comes due when the last borrower dies, sells the home, or moves out. In the meantime, you still have to pay property taxes and homeowners insurance and keep the home in good repair, or the lender can call the loan due. Ramsey's company calls reverse mortgages 'major rip-offs' and warns that the loan balance grows over time due to interest.

However, paying the loan off early can erase built-in flexibility and defeat the purpose, so seniors can often leave them in place and maintain cash flow during their golden years.

Ramsey says that 0% APR retail or auto financing deals can be risky. With a true 0% APR deal, you won't pay interest as long as you pay on schedule. 

But watch for offers that say 'no interest if paid in full,' which are common on store cards. These are deferred-interest promotions: if any balance is left when the promotion ends, you'll owe interest going back to the purchase date. With those deals, make sure you'll pay off the full balance before the deadline, since the minimum payment usually won't get you there.

Ramsey's debt-free system calls for paying off everything, including your home, but some advisors say certain debts may be worth keeping after 60, especially when paying them off would reduce liquidity or raise the risk of tapping retirement savings. Low-rate loans, managed debts, and protective financing tools can support a comfortable, resilient retirement income.

Maintaining moderate, well-managed debt in the right circumstances doesn't derail financial security; instead, it can empower cash flow and flexibility in retirement. Consider Ramsey's tips to move beyond living paycheck-to-paycheck and decide which debts deserve your attention.