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'Debt crisis' facing UK pensionersUK, April 09, 2007 - In the future, more of the UK's pensioners could need debt consolidation options such as an IVA, or a Trust Deed as they are increasingly finding themselves in financial trouble, suggests DebtFC. In the future, more of the UK's pensioners could need debt consolidation options such as an IVA or in Scotland a Trust Deed, as they are increasingly finding themselves in financial trouble. According to research carried out for DebtFC, one in four people in the UK aged over 60 still have outstanding mortgage debt. This borrowing is worth £98 billion collectively, meaning that the average person who is retired or nearing retirement still owes £31,000. Worryingly, the report shows that as people get older they tend to find themselves in more debt. Typically, people aged between 60 and 63 owe £23,512, while the over-70s owe £37,000. "With the rising trend in higher levels of borrowing, and fewer people saving for retirement, this could be a debt crisis waiting to hit the next few generations of pensioners even harder than we're seeing now". The very difficult situation a sizable number of pensioners find themselves in, trying to cope with debt repayments as well as rising living costs," added Rory McDonald, the sales director of DebtFC. Mr McDonald added that more people could have to seek debt consolidation options such as an IVA or Trust Deed in the future, as "we see people borrowing more, borrowing for longer and saving less". Another option we are able to offer for homeowners is "Rent it Back" enabling pensioners to utilise the equity that is tied up in their homes. |
