Indebted, in trouble, and over 50

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, according to research conducted by moneysupermarket.com.

More than a fifth (22 per cent) of over 50's have taken on more debt, with five per cent increasing debt ‘a lot' over the past 12months. Of those who are still carrying debt, worryingly 15 per cent believe debt will always be a part of their life, and they expect to live life in the red. Worryingly nearly half (48 per cent) 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 per cent) of Brits aged over 50 have reduced their outstanding borrowings, with 21 per cent 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.

"For those who have seen significant increases in their indebtedness over the last year, I would strongly encourage them to go through their household budget ruthlessly, line by line, and identify where outgoings can be cut. Those struggling to make their repayments must avoid the temptation to try to ignore the problem and should contact their lenders as well as one of the independent and free debt advice charities such as National Debtline or the Citizens Advice Bureau.

"Anyone starting to worry about their financial situation shouldn't bury their head in the quick sand of debt - problems are easier to tackle when addressed early."