20% of British Pensioners have Credit Card Debt
Posted June 19th, 2009 One out of every five British pensioners has credit card debt, according to new figures from Key Retirement Solutions.
With an average balance of £8,892 owed, many pensioners are forced to use credit cards for day-to-day expenses.
The financial downturn has significantly affected Pensioners as the low interest rates have meant that their savings based income has been reduced substantially. This, combined with increases in food and fuel prices means that pensioners’ disposable income is keeps reducing.
Chris Tapp, the director of Credit Action said
“Debt is a worry for people of all ages in the recession, but it is particularly troubling for us to see a marked increase in the problems older people face,”
To compound the problem for older Brits, mortgage debt continues to be a significant issue. One in three pensioners still have mortgage debt, the average mortgaged amount is £43,000, requiring monthly payments of £205 PCM.
If you’re in the unfortunate situation described above, there’s probably not much you can do to address this debt beyond slow repayment. If you’re not in this situation, if you’re younger, please take this as a warning of what could happen if you don’t manage your debts. If you’re on a fixed income, clearly the goal is to have all of your debts paid off by the time you retire.
Citizens Advice Bureau has reported a significant increase in the number of older people seeking debt advice, with 350 new cases every day referred every day relating to people 65 and over.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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