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Retirement Delayed By Unpaid Mortgages And Credit Card Debt

by Jim ONeil on February 5, 2011

in Personal Finance News

Most of us hope for a comfortable retirement, with no worries about finances. This is becoming more like a dream for many people, with one in five individuals set to retire this year facing debt that averages £33,100. For males older than 65, things look even worse because one in every ten has debt exceeding £50,000.

The largest problem is credit card debt, faced by 55 percent of people retiring. Mortgage loans are another big obstacle, relevant to 53 percent of those due to retire. This information and more was revealed in a recent survey by Prudential. Research conducted by the Consumer Credit Counseling Service (CCCS) revealed that the averaged unsecured debt of clients over 55 is £25,826.

The CCCS reports that people over 55 are facing a tough situation. Since many had children later, they may still be paying for university tuition. They may also have financially-dependent parents, making

them financially responsible for two generations, in addition to themselves. The average income of a person over 55 is £12,920, making it difficult for anyone to get out of debt in retirement.

The CCCS and National Debtline are just two places that those who plan to soon retire can find free debt advice. Delaying retirement is the best way to improve the situation. Not only does it provide time to increase cash flow by paying off debts, it allows individuals to build their pensions. Another solution is to downsize the residence or take an equity-release product.

Individuals should make the most of pension contribution tax relief and reduce their mortgage through low interest rates. They should also conduct a regular analysis of the finances and be careful not to overspend during the working years. Many in the younger generations are living beyond their means, creating a reality of continuing work into their seventies.


This advice is sound. There is a site that's very helpful without charging you anything and gives you information on what your options are. There's another that even provides form letters to send to creditors.

The other people to talk to are your local CAB. They have a lot of information on clearing debt and can help with letters.


No. Selling debt is common.

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