A record number of Brits are retiring deep in debt

By UK CreditCards.com

An increasing number of British pensioners are heading into retirement with significant debt. In fact, according to a recent report from a leading insurer, a generation of Britons expect that they will take their debt to their graves.

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A third of over 75s have over £3,000 of debt on credit cards
The study by Aviva found that one in seven baby boomers now hitting retirement don't expect to ever be debt-free. The report, published in the Guardian, also found that "one in three over-75 year olds have crippling credit card debts averaging £3,370 a head."

In addition, the Real Retirement report found that pensioners in debt now typically have a personal loan of £5,983, a credit card and a store card with an outstanding balance of £1,200.

If you or a loved one are retired and in debt, here are a few tips for paying off your debt faster. 

1. Transfer your balance to a lower rate card. If you have debt on your credit cards, one of the best ways that you can tackle your borrowing is to shop around for the best credit card rates. If you are currently paying a high rate of interest on your credit cards, then it will take you longer to repay the balance than if you transfer to a lower rate card. 

2. Don't just sign up for the first card offered to you. By heading online to find the best credit card rates, you can cut the interest that you pay on your credit cards, meaning that more of your monthly payment goes toward repaying the balance you owe.

3. Use an airmiles credit card to help pay for holidays. Aviva found that over-55 households are also cutting back on holidays to help pay for rising food and petrol bills. However, an airmiles credit card can help you retain your holidays.

Airmiles credit cards award Air Miles based on the amount you spend on your credit card. If you repay your balance in full every month, you can generate a high number of Air Miles simply by using your credit card to pay for goods and services.

See related: Getting to grips with credit card debt; Card users to transfer £2.8 billion in 2011

Published: 20 April 2011