Research conducted by moneysupermarket.com has found that whilst more people are paying off their non-mortgage debt than increasing it, more than half of the UK's 50+ population is still carrying an average of £6,734 non-mortgage debt.
More than a fifth (22%) of over 50s have taken on more debt, with 5% increasing debt ‘a lot' over the past 12 months. Of those who are still carrying debt, worryingly 15% believe debt will always be a part of their life, and they expect to live life in the red. Worryingly nearly half (48%) of those whose debt has increased in the past year said they had gone further into the red in order to keep paying the bills.
The good news is that nearly half (48%) of Brits aged over 50 have reduced their outstanding borrowings, with 21% claiming to be ‘in a lot less debt now compared to one year ago'.
Tim Moss, head of loans and debt at moneysupermarket.com, said: "At a time when people should definitely be decreasing rather than increasing their borrowings, it's encouraging to see that a good number Brits aged over 50 are taking active steps to reduce the amount they owe.
"However, the fact that half of the people in this age group are still in debt above and beyond their mortgages is alarming. Those aged over 50 have to factor how long they can continue earning, and begin thinking seriously about their finances in retirement; debts that are currently easy to service could become a millstone round their neck in later retirement years.”
