Money
Managing your money
Over 60s' debts on the rise
Levels of debt among the over 60s are increasing according to a report, writes Holly Thomas
It is claimed this age group has some of the highest levels of unsecured debt of any of its client groups with average unsecured debt of £25,722 and an average of eight creditors.
"This indicates a worrying trend, as more and more over 60s appear to be getting into serious debt, struggling to cope with the cost of living," said Kevin Still of EuroDebt.
"Retirement should be a happy and relaxing time, after a lifetime of work.
"But our figures reflect concerns of rising debt among older people with organisations for older people."
People living on a pension are hit harder than those still working because these represent their main outgoings in many cases.
However, the report showed that more than 20 per cent of over 60s clients are yet to finish paying off their mortgage.
The increase in interest rates last year pushed the cost of debt upwards, and although rates are now coming down the damage has already been done for many who have missed repayments and defaulted on loans.
Still added: "Many are struggling with debt and need advice. For those people over 60 with an average monthly income of just over £1,000, the level of debt we are seeing is extremely worrying."
Experts urge that it is essential to get help before it's too late.
"The key to dealing with problems is to stay in contact with your creditors," said Frances Walker at the Consumer Credit Counselling Service (CCCS).
"The best thing you can do is get in touch with your loan provider and tell them about your difficulties to talk through a solution."
It is a good idea to get a third party, such as the CCCS or another free service, to go through a budget with you.
Counsellors are clued up about how much creditors will allow you to spend on food and other essentials and can help you present your true financial status to companies chasing you for money.
Remortgaging is unlikely to be an option once you hit your mid-60s, depending on your circumstances. But there are other options that can help release equity allowing the debt to be repaid and avoiding the need to sell the house.
Extra pressure on monthly budgets is exacerbated by price hikes from utility companies and other household bills. To help with meeting household bills, check that you are receiving all the benefits you are entitled to.
* Holly Thomas is the deputy personal finance editor of the Daily Express and Sunday Express. Holly's opinions are her own and for general information only. Always seek independent financial advice.
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