It has been reported that retired people in the UK have thousands of pounds outstanding on credit cards and loans, with the average debt amongst retirees said to be on the increase.

The report was put together by the Scottish Widows UK Pension Report and relates to non-mortgage debt amongst consumers of retirement age. This further reflects the worrying levels of personal debt that are being seen in the UK amongst most age groups.

According to the results of the study non mortgage related debt, which includes that seen on personal loans and credit cards, has increased by over £600 since last year, and since 2007 has increased by over £1400.

Around one in six retired people also have an outstanding mortgage with around £50,000 outstanding on it, which again is an increase on last year of around £8000.

One industry official stated that the recession did not seem to be having any effect on the willingness of people to repay their debts, stating: “The recession has seemingly done nothing to encourage retirees to cut their debt, and with the possibility of the value of their property dwindling, they could be leaving themselves in a vulnerable position. Those in retirement should be able to enjoy life and not worry about the financial burden of debt, as well as their retirement income.”

Industry officials have said that given these rising figures and the worrying level of personal debt amongst those of retirement age it is increasingly important for those that are nearing retirement to ensure that they make provisions to clear off as much of their personal debt as they can to avoid severe financial problems.

This includes clearing as much oustanding debt as possible off credit cards, store cards, personal loans, and other non mortgage related debt.

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