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Pensioners' Credit Card Debt Reaches All-Time High

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Lots of house rich, cash poor pensioners around. Maybe crash the market form the top, unable to maintain their large houses some pensioners will have to bite the bullet and downsize, extra supply of larger houses onto the market. With the removal of garden grabbing - subdivision of large homes into flats the next trend?

http://www.credit-card-comparison-online.co.uk/news/pensioner-credit-card-debt-all-time-high.html

Pensioners' Credit Card Debt Reaches All-time High

Dedicated credit card news & the latest updates from across the UK

By Emily Gorton

Staff Writer

17 September 2010

pensioners' credit card debt reaches all-time high

Latest Updates

Spending on Credit and Debit Cards Rises

Credit and debit card spending rose in August despite consumer confidence fears, Barclaycard report.

Ombudsman Reveals Worst Credit Card Providers

The six-monthly complaints figures from the Financial Ombudsman Service reveal the top five most complained about financial institutions.

Barclaycard 0% Balance Transfer Deal Back on Top

The Barlcaycard Platinum credit card's sixteen month 0% balance transfer deal is a market-leader.

Debit Card Use Outstrips Credit Cards and Cheques

Cheque use is falling and credit card use stalling. According to the Payments Council the debit card is king.

Related News & Guides

MBNA's New 'Fairer' Policy Masks Hidden Costs

A new payment allocation policy by card company MBNA may have costly implications for consumers paying off debts on a card running two simultaneous 0% offers.

Young People 'Ignore Their Debts'

18-24 year olds are far more likely to leave bills unopened, avoid creditors and refuse professional help with debts, new research suggests.

Record Numbers Seek Help with Debt

Record numbers of Brits are seeking help with their debt problems according to new figures from the Citizen's Advice Bureau.

Balance Transfers to Surge in New Year

Study claims 10% of the population will redistribute their debt in early 2010.

RECENT figures produced by GFK NOP reveal that retirees are in a record amount of credit card debt.

Unlike younger credit card users, pensioners are spending more on their plastic than ever before and are more likely to let their spending accrue interest, too.

In June of this year alone, retired people spent an average of £354 on their credit cards, a spending high which hasn't been seen since the height of the credit crunch in October 2008.

Lowered incomes, inflation and a slow economic recovery are amongst the suggested explanations for this increase.

GFK NOP financial researcher Davyd Edwards explains that, "the cost of living has rocketed while income from savings and investments has fallen, leaving retirees having to adapt to this shortfall."

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What will you do if today's youngsters decide blue pills are handed out for all over 70's? Better to spend it now just in case :)

wot?...Viagra?....cant wait.

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Annoying article, with no grounded numbers. For instance: Was it an increase in NET debt? By what percentage?

"Emily" must do better.

.

Edited by Tired of Waiting

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Annoying article, with no grounded numbers. For instance: Was it an increase in NET debt? By what percentage?

"Emily" must do better.

.

Precisely.

I read this article twice, and could find no hard figures which supported her statement that " pensioners are .......more likely to let their spending accrue interest". The article does indeed quote figures for the increase in credit card spending by pensioners, but where is her evidence that they are letting their debt build up rather than paying off their credit card bill in full every month? It could well be that pensioners see inflation as a serious threat and are just spending their savings while they still have some value. After all they've seen this all before in the 1970s when inflation hit 25% and think "what the heck" and bring forward the purchase of goods and services before their savings are next to worthless.

As to why this expenditure flows though their credit card, its pretty obvious. Convenience, ability to buy online (which older people are doing more than ever) and better consumer protection.

Without more hard numbers from 'Emily' we simply don't know if they are building up debt.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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