Elderly Credit Problem

Elderly Credit Problem

According to research by Bristol University’s Personal Finance Research Centre, credit users in their late 50s and early 60s owe on average at least four times as much in unsecured credit as their counterparts did a decade ago.  Elaine Kempson, director and professorial research fellow, said “There have been growing indications that people are entering retirement with outstanding mortgages and personal credit commitments, which can cause financial difficulties for these people”.

The report also highlights that the levels of credit use may already be forcing people to delay the timing of retirement.  David Sinclair, head of policy for Help the Aged said “We know from working with older people suffering from chronic debt that even relatively small levels of debt cause untold misery when living on a fixed income”.

Our view

A slightly worrying report.  People need to plan their finances much more ruthlessly.  We all need to balance a good life with managing our money.  

You would not consider performing brain surgery on yourself yet many people try to financially plan themselves when it would be much more profitable to tale professional advice from a highly qualified financial planning expert.

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