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Council Tax Advisors CIC

Debt among over 55s has increased by almost 20 per cent in the past year alone.

Leading providers of impartial debt advice, Council Tax Advisors CIC, have commented on the current debt situation for over 55s. Up from £1,420 to £1,680 in one year, the personal debt situation in Briton is certainly reason for concern.

Debt among over 55s has increased by almost 20 per cent in the past year alone. It would appear Britons are returning to a culture of high spending. The amount individuals are spending on their credit cards has risen by 10 per cent since 2013. Borrowing through personal loans has grown by almost a third and overdraft debt has also risen.

The average net unsecured debt among over 55s is now around £1,680 compared to £1,420 the previous year, according to the insurance firm Aviva. Many individuals approaching retirement age feel comfortable spending more in the hope that the value of their house could fill any shortfall in their pensions. The average monthly expenditure was £845 in April to June this year, compared to £792 last year, the highest since 2011.

However, only half of people are saying they believe they will not have enough money in retirement based on their current spending. The fact that the economy is improving and property values are increasing has led over 55s to start spending and building up debt. The upturn in property values have left this demographic feeling confident that the value of their house will stay consistent, however this could all change.

Experts in debt advice, Council Tax Advisors CIC, take a keen interest in debt statistics. Managing Director, Chris Richards, said: ‘Those nearing retirement age need to match their borrowing and spending habits with their income and retirement savings, so they have to budget their money to last their whole lives.

‘It can be easy to feel reassured by the potential economic recovery, however homeowners should still regulate and budget their spending to take retirement into consideration. Debt problems still currently cost taxpayers around £2.7bn in the UK alone. This number could be decreased enormously if national awareness was raised for impartial advice services such as those provided by Council Tax Advisors CIC, who aim to both prevent debt and help those struggling with pre-existing debt.’

Council Tax Advisors Community Interest Company (CIC) is a not-for-profit organisation offering free and independent advice and resolution services to those in council tax arrears or any other kind of debt. Formed in 2012 as a direct result of personal experiences with bailiffs, they are expertly placed to give advice and guidance on how best to deal with debt situations and offer long-term sustainable solutions including the organisation of repayment plans and professional mediation services.

This press release was distributed by ResponseSource Press Release Wire on behalf of Council Tax Advisors in the following categories: Leisure & Hobbies, Personal Finance, Business & Finance, for more information visit http://pressreleasewire.responsesource.com/about.