Credit Card Debt Mortgage

With fewer jobs around, the recession has left many Britons who are struggling for cash as the cost of living soars.

However, such as gas, electricity, water and rising food prices, could it be that pensioners have been hit hardest by the crisis?

As the UK falls into deeper recession, pensioners are falling deeper into debt as most of them turn to credit cards as an attempt to leave forward. According to figures from Key Retirement Solutions (KRS), today's pensioners owe a debt of more than £ 183 million.

Research the company found that one in five pensioners have outstanding credit card debt with the average to an impressive total of £ 8,892 per person.

The savings are Falling

A growing number of retirees in the UK are seeing their savings decrease as a result of ongoing reductions in the Bank of England base rates. Along with the decline in pension values more, pensioners are facing debts increased as they begin to use their credit cards to buy everyday essentials such as food and fuel, which increased significantly during the past year.

KRS found that those with aged between 65 and 69 have an average balance of credit card of £ 9,086, while the 70 remains at £ 8,760.

Chris Tapp, director of charity Credit Action warned of the growing number of pensioners As credit cards as a means of passing.

He said: "Debt is a concern for people of all ages into recession, but is particularly worrying for us to see a marked increase in the problems facing the elderly.

Last year, the debt levels among people over 60 years increased more than any other age group. "

He said "As the crisis has beaten the value of pensions, property and investment and saving has fallen.

Tens of thousands of people who should be enjoying retirement, rather than stressing about their finances – and this "debt gray is an area of concern ".

Retirees seeking debt advice

According to the Office of Citizens Advice, has been an increase in the number of elderly Britons seeking debt advice.

The company noted that five per cent of its new the debt cases to date are over 65 years, while 10 percent are of those between 55 and 64.

KRS also revealed that pensioners have a total of more than £ 140 billion in href = "" mortgage debts> with one in three have a debt average £ 43,000 each, when going into retirement.

KRS's director, Dean Mirfin said: "Many look to retirement as a period which should be free of any concerns of debt and proceeds to enjoy full retirement. Of great concern is the fact that the 70 and over of age carry the bulk of the debt show that the problem is obvious and in retirement. More than 66 percent of total debt is held by those aged 70 and over. "

"The future is bleak for many of those who spend their retirement will not pay the debt," he said.

Moira Haynes, of Citizens Advice, said: "Inevitably, income is reduced by most people in retirement and have to take that into account and make proper financial planning.

"Anyone struggling with debt should not ignore. It will not disappear. If you really can not cope, you should consult to a debt adviser who can help them reach an affordable payment plan.

About the Author:

If you are after an interest free credit card or want financial and debt advice find the right service at OnlyFinance.

Article Source: ArticlesBase.comUK Pensioners In Credit Card Debt

Leave a Reply

Your email address will not be published. Required fields are marked *