Debt ‘a problem for people aged 50-60’

Debt is an increasingly significant problem for pre-retirees, it has been claimed.

Research from Payplan has found that the average unsecured debts of those aged 50-60 stood at £41,400, 25 per cent higher than the level owed by other age groups.

In addition, it revealed that the average repayment period that pre-retirees agreed to under a debt management plan was 11 years, compared with nine for other ages.

“Although many people in their fifties are used to maintaining high levels of personal debt they are often just ‘treading water’ with repayments and covering little more than interest charges,” remarked managing director John Fairhurst.

He added that people should have a clear plan in order to become debt free while they are still of working age.

Meanwhile, the Financial Services Authority has warned that many customers are not aware that they will be charged interest on payment protection insurance, often sold alongside financial services such as loans.

By Jamie Price