Credit Card Debt Hits the Over Fifities Hardest
There seems to be growing evidence of the UK slipping even further into personal debt hell.
Only recently a warning issued by a charity indicated that many in their 50’s have the most acute credit card problems. That was quite a surprise to me as it might be to others. I guess the cliché of the spend thrift parent from the post war generation has been well and truly put to bed.
According to the study:
“One debtor owing a total of £412,000 on 57 credit cards. The unnamed 56-year-old is the largest debtor on file with the Consumer Credit Counselling Service (CCCS) which said that although credit card spending has slowed since 2005, those over 53 were increasing their spending. The organisation, which has 155,000 clients, said those aged 53-59 have the highest outstanding credit card balances while clients in their 60s drove up their balances by one third between 2004 and 2005 - the largest yearly increase of any group.” (Via 24dash.com)
I think this has quite clearly highlighted the problems that the UK government has created by raiding the pension schemes of billions of pounds. Middle aged retirees have been forced to fill the financial void by taking on equity withdrawal schemes and enticing 0% offers by credit card companies. With their peak earning power behind them, many find themselves tied into a vicious circle of debt.
This is supported by research recently released by insurer Prudential which showed more than a million pensioners have debts, owing an average £15,500 each.
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