Life Insurance News: Over 60s Have the Biggest Debt Problems
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Article Published: 29-May-2007
CCCS’ Statistical Yearbook 2006 found that last year the problem of debt in the over 60s age band rose faster than any other age group.
The Consumer Credit Counselling Service has predicted that by the end of this year alone its workers will be counselling more over 60s in extreme debt than under 25s.
Malcolm Hurlston, chairman of CCCS commented on the results by saying, “the increasing levels of debt among the over-60s has been a marked trend for the past 18 months and shows every sign of increasing. We are watching it with care.”
In 2006 the over 60 age group had an average debt of over £31, 867.
Over the years the number of elderly people, especially women, living alone has increased. Also an astonishing number of women do not make an financial plans for the future, or have a pension, this leaves them with little to live on upon retirement.
This coupled with an unsafe stock market, low interest savings and inflation means that these people are force to borrow money or release equity from their homes.
Research by Thomas Charles, a debt consultancy firm has found that debt problems and insolvency risk do increase with age. They found that the over 55 age groups is 167% more likely to go bankrupt and 129% more likely to have debt problems than a similar person aged 18-24.
This is mostly due to these people not wanting to report their debt problems and take on the stigma of bankruptcy.
Source: Insurance-4-life.co.uk
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