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24
JAN
2014

Pensioners facing debt time bomb

You may be surprised to learn that 20% of the UK’s pensioners are facing an uncertain financial future. This is due to an insufficient pension payment not being able to meet the everyday living costs. Inflation has risen much faster than the pension amount and many over-65s have had to resort to borrowing cash to make ends meet.

Credit problems

Almost 25% of over-55s have applied for a credit card, loan or an overdraft over the last year. So it appears that those who are approaching retirement age are also being sucked onto this trap. And only 43 % of this age group have managed to live on their own income without any issues.

Expenses

Many of these individuals have enjoyed a certain standard of living whilst in full time employment. Once they become reliant on a pension, the financial difficulties start to take effect. These people feel as if they should be enjoying their retirement, but are unable to without some extra help.

Endowment mis-selling

It is especially tragic when you take into consideration that many of these pensioners thought that they were going to be enjoying a safe and secure retirement. Sadly, due to a plethora of poorly planned endowment policies, this was not to be the case.

Turned down

Another shock discovery was the fact that many of the over-55s who have applied for credit have been turned down. This figure is even higher for the over-65s, but is this such a surprise? These age groups will be considered to be high risk, especially when you consider their limited income and the increased possibility of future health issues.

Credit rejections

In recent times, banks have started to impose age limits on their personal loan applicants. 70 % of all credit card applications can be attributed to the over 55 age group. It is depressing to think that may of these folk have worked hard for most of their adult life only to face this dilemma. This trend is said to be looking likely to continue and even spiral in the next couple of years.

Widespread problem

But debt remains a national issue and these recent discoveries only compound the worrying situation that so many UK families and individuals have to deal with on a daily basis. The next big concern is said to be a huge hike in mortgage rate once the next Parliament start to change things around. When you add this possibility into the current economic related difficulties we could be facing another recession within 2 or 3 years.

If the above reading has proved a little difficult to digest, there is another way to deal with your debts. We at Dissolve Debt are experts in helping individuals and families to work towards a brighter future. No matter how old you are and how much you owe, by calling our team of experts you will be making that first important step towards a debt-free future. We will be able to tailor a plan that suits your own needs perfectly, so please call today and we will be happy to help you.

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