4. Any type of debt
It’s never a good thing to have unpaid debts because it could also be one of the reasons for reduced Social Security benefits. Let’s say that you have to make monthly payments for your car, but now you can’t take care of this thing anymore. What’s going to happen next is that the bank holding your loan might reclaim your car.
But there’s also another case in which creditors could be able to garnish your wages. Experts say that Social Security payments are protected for the most part, but this doesn’t exclude the possibility that certain high-ranking creditors might be able to lay claim to them.
Some of the creditors who could do such a thing are those working at the IRS, and they can become one of the reasons for reduced Social Security benefits, meaning that they’ll take some money off your check to pay back taxes.
There are also other reasons for reduced Social Security benefits, such as unpaid alimony or child support and student loans, so you should be careful with those. However, experts say that regardless of the creditor, the first $750 of monthly Social Security checks are protected by law, but it’s still better to not have any debt.
What do you think about these reasons for reduced Social Security benefits?
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