New figures from UK debt charity, StepChange, suggest that pensioners are the most indebted age group in the country. The over 60s are accumulating an average of over £15,000 on credit cards – that’s 50% more than the average among any other age group.
It’s not just credit cards behind the soaring debt crisis though; they also owe around £2,000 on catalogues, store cards and overdrafts, with total debts now close to hitting the £300 million mark.
Debt among pensioners seems to be getting worse as the number approaching StepChange for help and advice has soared by 36% over the past four years. The average debt for people over 60 seeking help was just below £23,000, compared to £16-17,000 for other age categories.
The only area where the over 60s bettered younger borrowers was personal and payday loans. They borrowed an average £1,220 from short term lenders during 2012, which was £440 less than the amount borrowed by others.
However, the average payday loan did increase by £100 compared to the previous year. It’s also a problem that accounts for over half a million pounds of debt. So, despite asking for less cash in the form of payday loans, there is a growing concern that more pensions are turning to this ‘last resort’ method of borrowing.