Credit Card Generation Retirees “Drowning in Debt”

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Leading UK personal finance website, compareandsave.com, comments on news that featured in the Telegraph that 1.1m retirees are ‘drowning in debt’.

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1.1m UK retirees drowning in debt’UK Credit Card Debt Increases

Traditionally older people have been able to rely on savings and almost increasing equity they have in bricks and mortar. The current climate doesn’t allow for that...

Joint research between the Age UK and the International Longevity Centre (ILC) released today, and reported in the Telegraph, reveals that over 1 million older people in Britain are “drowning in debt”.

Researchers analysed the experiences of more than 1,300 individuals over the last decade, using information gathered by the English Longitudinal Study of Ageing (ELSA).

The research points to declining returns from savings accounts, an increasing reliance on interest-only mortgages and increasing credit card debt as key reasons for the issues facing the “baby boom” generation. Unpicking the data further though reveals a more complex picture with regards credit card debt; the number of older people borrowing on credit cards had actually declined over the past 6 years. However, total debt held on credit cards by those who continue to possess them showed significant increase of up to 66%.

Other worrying statistics include the fact that an expected 400,000 older people in the UK are paying more than £350 per month, simply to service their debts, and 28% (1.1 million older people) could be categorised as have “debt problems”.

A spokesperson for compareandsave.com commented on the news :

“This research by Age UK and the International Longevity Centre (ILC) points to some very worrying trends amongst older people in the UK.

It has always been perceived that the “baby boom” generation were more relax regarding debt than their forefathers - obviously that is fine assuming that debt is well managed, and the consequences mishandling credit are fully understood.

Traditionally older people have been able to rely on savings and almost endlessly increasing equity they have in bricks and mortar. The current climate doesn’t allow for that so, more than ever before, they need to get on the front foot when dealing with their debts. Switching to better savings products were they can, ensuring that they have the best mortgage for their needs and of course transferring credit card balances where necessary to a lower interest rate.”
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Notes to Editors:

compareandsave.com is one of the UK’s leading personal finance comparison websites. Based in Colchester, Essex, compareandsave.com has been helping UK consumers get a better deal on credit cards, saving, loans and more for over five years.

For more information, please contact Mark Scott on 0207 195 1970

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Mark Scott
compareandsave.com
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