Over-50s debt problems highlighted by report

05/10/2009

A majority of UK over-50s hold debts unrelated to their mortgage, a new poll from Moneysupermarket.com showed today (October 5th).

The financial website showed that many older people are struggling with their finances in the recession, with 22 per cent having taken on extra debt in the past 12 months.

Typically, over-50s who owe money on loans, credit cards and other non-mortgage borrowing were found to owe £7,000.

Tim Moss, head of loans and debt at moneysupermarket.com, said: "For those who have seen significant increases in their indebtedness over the last year, I would strongly encourage them to go through their household budget ruthlessly, line by line, and identify where outgoings can be cut.

"Those struggling to make their repayments must avoid the temptation to try to ignore the problem and should contact their lenders."

The Moneysupermarket.com poll also found that many over-50s were shoring up their finances in the credit crunch rather than borrowing more.

Just over one in five (21 per cent) said that they were now "in a lot less debt" than they were a year ago.

“EuroDebt has thousands of clients where one or both of the people on a Debt Management Plan is over 60 and are either retired or facing the prospect of retirement," EuroDebt director Kevin Still added.

"For these clients, the average level of unsecured debt is just over £28,000 with seven creditors. But for over 60s couples with a mortgage, their average unsecured debt is £40,000 with nine creditors. For some their savings have been hard hit as a result of the interest rate cuts and for others the prospects of living off the equity of their properties has diminished."

Tags; Debt Management and Banking, Retirement Money Problems,

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