Debt after Retirement, - Pensioner Debts and the over 65's

It was announced recently that British pensioners owe a staggering £8.4 billion between them and this figure is only set to continue rising.

Added to that, almost 600,000 over 65 year olds are still paying off their mortgages, each individual with an outstanding balance owed of over £30,000. This is also compounded by the worrying statistic that over 1.5 million pensioners owe money on credit cards.

A lot of over 65's also owe money on store cards, overdrafts and personal loans as well the major debts we have already mentioned above. Because of the effects of interest rates and charges, these vulnerable people on low incomes can quickly find themselves in deep financial trouble with these kinds of debt.

The Consumer Credit Counselling Service CCCS has said that in the last twelve months the number of people over the age of 60 who have money problems has increased because of the rising cost of living more than any other age group .

These difficult debts leave people who should be enjoying their retirement after a life of work, trying to juggle their debts simply to make ends meet on a day to day basis.

Debt can be controlled using these simple ideas as a starting place.

1. Is the situation as bad as it feels? - know for sure!

Knowing the exact extent of the debt problem is the first step is improving the situation. Work out exactly what your outstanding balances are for each individual debt and what they are for and then you can begin to decide which debts should be repaid first.

Your first priority, for example, should be any debts secured on your home or car as you could easily lose either or both if you miss any payments.

The next priority is bills like council tax and television license as these can result in you being prosecuted if you do not pay them. After these you should address the debts with the highest interest rates.

2. Save money by switching utility suppliers!

By searching some well known websites on the internet for just a few minutes you can make major savings. There is a huge amount of competition to be your supplier for utilities like your telephone, gas, electric and insurances. All of these things can usually be found cheaper using these specialised internet websites who will search the whole sector to find you a better deal. Even consider changing credit cards. A credit card with a lower interest rate could save you hundreds of pounds.

Some of the well known sites are;
www.the-spendability-group.co.uk
www.direct.gov.uk.com

Competition is so great for your business, that some of these websites will actually give you cash back if you use their site to switch suppliers. That has to be good news!

3. Be aware of any Government Benefits available to you

Because pensioners in UK very often do not realise exactly what they are entitled to claim, billions of pounds go unclaimed every year. Sometimes it may be that they do not want to fill in forms containing information they prefer to keep to themselves. Benefits like pension credit and Council Tax benefit are there to be claimed so get advice from a family member if you are unsure or even talk to Age Concern, they will gladly help with these forms.

4. Other considerations

The equity tied up in your home may be the simple solution to your debt problems, especially if you feel your house has become too big for you.

You could even consider going back to work to boost your income. A part time job may be something you haven't thought of that could not only solve your financial troubles, but could also improve your social life. Remember to be careful about how many hours you work as that can  affect your benefits.

If you are retired and feel you may need some impartial and confidential advice about your debts, call us free and speak to one of our trained advisors today on 0800 018 6868.