Debt and the elderly
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While problems with debt are becoming more and more widespread there is concern among debt charities that it is disproportionately effecting the over 55’s. Nearly a quarter of over-55s with debt over £10,000 have said that they are “quite likely” or “certain” to go insolvent. This is compared to the one in 10 of 18 to 24-year-olds, with more than £10,000 debt, who say they will go insolvent.
This research, from the Consumer Credit Counselling Services (CCCS), echoes earlier findings that older people are struggling more with debt than younger people.The CCCS says there has been a rise in the number of elderly people asking for help, with men over 60 owing the most. Reasons for the greater concern among older people are thought to include a lack of understanding of the options available, particularly the Individual Voluntary Arrangements (IVA’s) that are now a common place alternative to bankruptcy.The CCCS also states that a stigma remains among older generations about discussing or even recognising that rising debt is becoming problem debt. Community workers say that debt is a taboo topic for elderly people, and they will keep their money problems secret even from their closest loved ones.
To demonstrate the seriousness of the problem the CCCS has pointed to a surge of suicides among elderly Japanese people during 2007. These were linked to levels of debt in a society where serious financial problems are a source of shame.Incredibly, the average debt for pensioners who call a national debt helpline is £31,000, yet a third of all pensioners live on less than £7,500 a year.
Despite this, like the rest of the population, credit card ownership has steadily grown over recent years. More and more old people are reliant on credit to make ends meet and it can easily spiral out of control. It is also the elderly who are the most vulnerable when it comes to scams and frauds. Debt charities are urging people with elderly relatives who they suspect may be in trouble with debt to talk to them about the subject openly. An additional obstacle is the elderly are less likely to be accepted for debt consolidation loans due to their age. Catching the debt problem early will make it much easier to solve, and in the process, the stigma around financial difficulties will be removed.
