Once your kids have left for college and you are getting close to retirement, you will probably find yourself preparing your home and finances for the future. Here are some ideas for handling your credit as an empty nester.

Pay off your children’s student loans
If you got PLUS loans when your kids went to college, you can choose how you want to repay them. PLUS loans are federally sponsored education loans for parents sending their children to a college or university. You can choose either the standard, graduated, income-sensitive, extended or consolidated repayment plan. Choosing the graduated or income-sensitive repayment plan may not be the best idea if you are close to retirement, because your income will probably decrease and it will end up taking you a longer time to repay the PLUS loan. Instead, you can make a plan to accelerate your payments and get out of debt early so that the loan doesn’t extend into your retirement when you are living on a fixed income.

Consider your housing situation
Is the house your children grew up in starting to feel too large now that fewer people live there? Is it getting harder to clean and maintain your house and yard? If so, you might want to consider downsizing to a smaller home. If you have a lot of home equity, you can sell your home and use your equity for a smaller home at a lower price. This can also help you pad your retirement account so you can live comfortably once you stop working.

Use your credit cards wisely
It is a good idea to only make purchases you can afford to repay at any life stage, but it is especially important as you get close to living on a fixed income. If you don’t pay off your purchases, they will end up costing you more over time. This can tighten your retirement budget and keep you from doing the things you want once you stop working.