Over 65’s to owe £86bn by the end of the year
Research finds older borrowers are failing to pay off debts before retirement age
A new study commissioned by More2Life has found that overall debt for over-65s has grown to 35bn in three years and is expected to surpass last year’s figure of £78bn. This figure includes all types of secured and unsecured debt including mortgages, credit cards, car finance and payday loans.
In 2018, the average mortgage debt of those aged 65 and over will stand at roughly £86,000, 13% higher than in 2013, with interest-only mortgages possibly contributing to the rise.
David Rodger, CEO of Debt Advice Foundation said;
“Alarmingly, according to Insolvency Service figures, the number of insolvencies in the over-65’s category has risen twice as much as the 55-64 age group, the next highest rate of change, since the year 2000.
“There are many reasons for the increase in debt amongst the over 65s. Not only are we seeing higher numbers of people than ever before carrying unsecured debt like credit cards and overdrafts into retirement, but we’re also seeing more homeowners entering later life with mortgage debt still in tow. Income naturally falls during retirement or when someone is working fewer hours, so outgoings and any income shocks can become more difficult to manage.
“There is however help out there for those who are aged over 65 and find themselves in debt. If you are struggling to meet your credit repayments, contact a debt charity such as Debt Advice Foundation who will be able to help you budget and will also be able to offer advice on any debt solutions available.
“You should also check that you are receiving everything that you are entitled to by finding out what benefits are available to people in your circumstances, such as help with fuel, which will free up more income to pay off your debts.”
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