You are here: Home - Credit Cards & Loans - News -

Over 55s credit card debt up by a fifth

0
Written by: Emma Lunn
09/10/2019
The proportion of people aged over 55 with credit card debt has increased by almost 20 per cent in 12 months.

The proportion of over-55s who have been in debt in the past five years and have borrowed using credit cards has increased from 37 per cent in 2018 to 54 per cent in 2019, according to More2Life.

The equity release lender found that more than half of over-55s who are in debt have borrowed using credit cards, and nearly a third of this age group borrow to cover day-to-day expenses.

The research found that after mortgages, credit cards are the borrowing vehicle of choice for the over-55s, with a fifth (22 per cent) of over-55s in the UK turning to credit card borrowing to help fund their lives.

After credit card borrowing, other common forms of lending include car finance (9 per cent), personal loans (7 per cent) and overdrafts (7 per cent). Interestingly, over-55s were more likely to be holding student loan debt after choosing to return to university than from a payday loan.

More2Life also found that the proportion of over-55s who have left their bills unpaid has doubled in the past 12 months from 8 per cent in 2018 to 16 per cent in 2019. The lender described this as a “cause for concern”, as is the fact that 29 per cent of this age group admit that covering day-to-day expenses is the main reason they have accumulated debt.

A further 26 per cent said they have used credit cards to help pay for other outstanding debt, and one in five said they have borrowed to help pay their mortgage debts. A quarter (24 per cent) have held debt to pay for a large purchase, such as a holiday or car.

Dave Harris, CEO at more2life, said: “As older generations enter retirement with lower pension pots but arguably more financial responsibilities than their predecessors, it is perhaps unsurprising to see that many are turning towards borrowing to help fund their later lives. Whilst credit cards have become a normal part of many people’s financial management and some will be comfortable servicing this debt, this is not true for everyone.

“If you are unable to pay your bills and borrowing on credit to keep afloat then it is vital that you consider all your financial options as it is only likely to get worse. Currently, around one in five of our customers use equity release to repay debt, so we know that these products and other later life lending options can help people facing these types of issues.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • What are some things to be aware of in choosing property to fund your retirement? Find out from our pension special… https://t.co/VFuyUcRFp2
  • RT @Defaqto: With many nervous about taking an overseas trip, Brits are booking up holidays closer to home. But should you buy travel insur…
  • RT @Defaqto: With many nervous about taking an overseas trip, Brits are booking up holidays closer to home. But should you buy travel insur…

Read previous post:
FCA logo
FCA urges victims of Ponzi scheme to get in touch

The regulator wants to hear from members of the public who lost money to Churchgate Trading Syndicate.

Close