Pensioners and Debt - Clear debts on a Pension

Personal debt help and advice after Retirement in the UK.

  • The rising cost of living for the number of people over the age of 60 that have money worries has increased more than any other age group in the last twelve months.
  • Instead of enjoying their retirement after a lifetime of work, pensioners find themselves in a position where they have to juggle debts like loans and credit cards just to live from day to day.

The number of pensioners in debt

  • According to a recently published survey, British people over the age of 65 now owe £8.4 billion between them and that figure is increasing daily. On top of that, over 1.5 million people in this age group also owe money on their credit cards.
  • Many pensioners owe money on store cards, overdrafts and personal loans. People on a very low income can quickly find themselves in deep financial trouble with these kinds of debt when interest rates and charges start taking effect.
  • If you are an older person who is concerned about their debts and would like some confidential debt help and advice, call us and speak to one of our trained debt advisors today on 0800 018 6868

Get your debts under control

Here are some simple ideas that may help older people start to get their debts under control.

  • Work out what the situation actually is.
    Before you can address a personal debt problem you have to figure out the exact extent and cause of the problem. You must work out exactly how much you owe to which creditor and for what. Once you have done this you can start to decide which debts can be repaid first.

    For example, you should be giving debts secured on your property first priority. Mortgages and car loans for example should be first as you could lose either or both if you miss payments.

    Some bills, like council tax and television license, can result in you being prosecuted if you do not pay them, so these should be paid next. After this you should address personal debts with the highest interest rates first.
  • Change utility suppliers and save money
    There are major savings to be made for just a few minutes work on the internet or phone. You can change supplier for all or some of your utilities like your telephone, gas, electric and insurances. All of these things can usually be found cheaper using specialised internet websites like Google where you can search the whole sector to find 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 comparison sites are;
  • money supermarket / Uswitch / compare the market / go compare / confused / tesco compare  
    Even better, some of these websites will actually give you cash back if you use their site to switch suppliers. That has to be good news!
  • Government Benefits
    Every year billions of pounds go unclaimed by pensioners in the UK. Often it is purely because they do not realise they are entitled to help or they do not want to fill in forms containing information they want to keep to themselves. There are benefits like pension credit and Council Tax benefit . Get advice from a family member if you are unsure or even talk to Age Concern, they will gladly help with these forms.
  • Other things to consider
    Consider releasing some of the equity in your home or consider downsizing to free up some cash especially if you feel your house has become too big for you.  Consider going back to work to boost your income. A part time job can work wonders in this respect and if you are careful about how many hours you work it shouldn't affect your benefits.
  • For help and advice regarding personal debt issues on a pension, please contact our debt helpline tpoday in total confidence.

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