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Credit Card debt warning to pensioners

Published: 24/03/2010 by Comments

Research by Key Retirement Solutions has discovered that one in five pensioners who are releasing equity from their home have nearly £1000 worth of credit card debt. The equity-release specialist surveyed 3,501 applications from last year and found out that the average 65-69 year old has racked up credit card debts of £8,881, with those over 70 clocking the most at £9,048.

Dean Mirfin, a Director at Key Retirement Solutions, explained, “Debt is a way of life for a substantial number of people and the over-65s are not immune. Many are perfectly comfortable with owing money on their credit cards and it can be a sensible way of planning for major purchases, however, the over-65s are more at risk as once they retire they may no longer have the income to service the debt and in many cases to ever clear their credit-card balance.

Worryingly, debts this large are bound to be having an effect on the monthly incomes of the elderly, especially when most are retired with no regular monthly income, leaving them vulnerable. Most pensioners who have accumulated this much debt are also unlikely to ever pay it off.

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