- 15
- Aug
Older people are finding managing their money to be an increasingly difficult task.
Such is the assertion of Key Retirement Solutions where in a recently released piece of research it was shown that a significant proportion of Britons over the age of 55 are in the red. The firm’s study showed that 35.66 per cent of such consumers have some form of unsecured debt, with these people in the red by an average of 11,106 pounds – through loans, credit cards and overdrafts. Overall, it was reported that people in this age demographic owe a total of 66 billion pounds.
And in owing such sums of money on credit cards, loans and other forms of borrowing it may also be possible that consumers develop difficulties in managing other areas of financial demand such as household bills and mortgage repayments.
The study also showed that personal loan difficulties are felt most keenly by the younger respondents within the over-55 age bracket, with 55 to 59-year-olds an average of 9,411 pounds in the red via this form of credit. Britons between the ages of 60 and 64 owe 9,047 pounds, with 65 to 69-year-olds having a typical personal loan debt of 8,702 pounds. Those over the age of 70, meanwhile, owe the least on loans at 8,477 pounds. However, that it is not to say that the oldest people questioned by the firm have the smallest amount of money problems of all the over-55s. Such consumers have a typical credit card debt of 8,232 pounds – the second-highest figure noted – and an overdraft of 3,420 pounds.
Dean Mirfin, business development director for Key Retirement Solutions, said: “As the cost of living is on the up, these figures, even if they are only part reflective of pensioners as a whole, are of real concern. Retirement should be a time to enjoy yourself after all those years of hard work, yet one in 20 people in their 60s, 70s and 80s admit to constantly struggling to keep up with financial commitments or having fallen into arrears. The cost of living for the elderly has surpassed inflation over the past decade therefore it is more important than ever that consumers are aware of the dangers of approaching retirement with such large amounts of debt.”
And even when credit cards, personal loans and overdrafts are not included those over the age of 70 have a typical unsecured debt – which has been accrued by other means – of 20,463 pounds. Such miscellaneous debt rises to 20,809 pounds for 65 to 69-year-olds.
Chris Tapp, director of Credit Action, added that it is crucial people are given access to financial guidance “to enable them to stay in control of their money and their lives” as the cost of living continues to rise. He reported this was especially important as the winter months begin to approach and there have been a number of increases in the cost of fuel.
Whatever their age, those consumers who find that they are struggling in keeping up with various financial commitments may discover taking out a debt consolidation loan is an effective way to help them get back into the black. By taking out this kind of loan borrowers may be able to merge monies owed across a number of sources into a single low-cost monthly repayment. As such they may find that they have more disposable income at the end of each month, helping them to get on a firm fiscal footing quickly. Getting a consolidation loan might be particularly recommended after a study carried out by Legal & General in July showed that the number of people living beyond their means has increased over the last six months. In particular those in the north of Britain were shown to be struggling with money management.
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