An article from the 13th October 2016
Almost a third of people over the age of 50 are dealing with financial debt, repaying an average of £12,000. Saga Personal Finance’s survey of 1000 people aged over 50 found that 29%, or 6 million, are currently repaying debts in addition to their mortgage. 67% of respondents have borrowed money using a credit card, while 28% have taken out a personal loan.
Other findings:
- women are dealing with more debt than men with them owing an of average £15,148
- 21% said they borrowed money to cover their bills
- 14% borrowed money to make home repairs
- 10% have got in debt due to unemployment.
However, most individuals are managing their debt to some degree with 60% being able to repay their debts and still live comfortably. A further 60% who have borrowed money said they were not expecting to have any debts when they got to their current age.
Our comments on this article
“It is quite worrying to hear around 6 million people over the age of 50, are not only burdened by mortgage repayments, but also additional financial debts. While having access to borrowing is a benefit, but only when done responsibly with the considered means to make repayments without it making life a struggle. I suspect those 6 million had accrued most of the debts prior to the recession- where at one point borrowing seemed “easy” and readily accessible. Of course, the struggling realisation since the recession hit has enabled a change in perspective in the way that people are more focused on establishing financial stability more than ever before.
Contact us today to discuss your financial planning.”