EuroDebt warns of retirement debt mountain

06/10/2009

Leading debt management provider EuroDebt has warned that many people could be forced to retire with substantial debts still to pay off.

The failure at the High Court of the appeal against the mandatory retirement age means many people may be forced to stop working while still owing thousands of pounds to creditors.

Almost 1 in 3 of EuroDebt's clients over the age of 60 still have a mortgage, with average unsecured debts of £40,000 with 9 creditors.

An analysis of the company's client base found that its male customers over the age of 60 had slightly larger debts than its female customers, with the average debt for a man standing at £32,000, compared to £27,500 for a woman.

EuroDebt's study revealed that the number of people aged over 70 seeking debt solutions has risen as well.

EuroDebt director Kevin Still said a number of worrying trends have developed since the start of the recession and the decision at the High Court could exacerbate the situation.

He stated that many people's savings have been hit hard as a result of interest rate cuts, while others who were planning to cushion themselves with the equity in their properties have seen their prospects diminish.

The situation means that some workers could continue in their jobs for longer, while those forced to stop could be looking at serious financial difficulties.

It is vital that the over 60s protect their homes, as they could turn out to be a valuable asset further down the line. To ensure this, those concerned should investigate Debt Management Plan'>Debt Management Plans which will help them deal with their creditors quickly and protect their property.

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