One in five pensioners carry credit card debt

By UK CreditCards.com

Pensioners' credit card debtOne in five British pensioners carry credit card debt, according to new figures from Key Retirement Solutions.

The average outstanding balance among this group stands at £8,892, with charity Credit Action warning that many are forced to use credit cards for day-to-day outgoings.

Pensioners have been hit hard by the financial downturn, with low interest rates meaning their income from savings has been severely reduced. Rising food and fuel prices have also meant that pensioners' disposable income is shrinking.

"Debt is a worry for people of all ages in the recession, but it is particularly troubling for us to see a marked increase in the problems older people face," said Chris Tapp, Credit Action director. The figures from Key Retirement Solutions also showed that mortgage debt continues to be a burden for pensioners.

A third of all pensioners have outstanding mortgage debt, with the average amount left to pay standing at £43,000 -- which requires monthly repayments of around £205.
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Published: 28 May 2009