More Than Half Of Over 50’s Still Have Loan Debts
Traditionally, when people pass age 50 they should normally be starting to think about retiring and building up sufficient funds and savings to see them through their retirement, but a recent survey has painted a very different picture of the over 50’s generation in the UK at the moment.
The research, which has been conducted by Moneysupermarket.com, has revealed that around 51 per cent of people aged over 50 still have outstanding debts on personal loans and credit cards, with an average balance of £6,734 per person, excluding debts on mortgages and home owner loans.
Worryingly, more than one fifth of over 50’s have said that they have increased the amount of their loan debt over the past twelve months and 5 per cent claim their personal loan and credit card debts have increased significantly in this time.
Around 15 per cent of these individuals do not anticipate that they will ever pay off all their loan and card debts and expect to continue making monthly repayments on their personal loans throughout their retirement. On a more positive note, around 48 per cent have claimed to have reduced their loan debts over the course of the past twelve moths, with 21 per cent saying that this is by a significant amount.
Head of loans and debt at moneysupermarket.com, Tim Moss, said “At a time when people should definitely be decreasing rather than increasing their borrowings, it’s encouraging to see that a good number of Brits over 50 are taking active steps to reduce the amount they owe. However, the fact that half of the people in this age group are still in debt above and beyond their mortgages is alarming.
Those aged over 50 have to factor how long they can continue earning and begin thinking seriously about their finances in retirement; debts that are currently easy to service could become a millstone round their necks in later retirement years.”
