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Over 50s 'facing soaring debts from unsecured loans'

Over 50s 'facing soaring debts from unsecured loans'

Category: Loans

Updated: 31/10/2008
First Published: 06/10/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Rising debts as a result of unsecured loans are affecting those between the ages of 50 and 60 more than any other age group, research has found.

Debt solutions company Payplan has revealed that the average consumer in this age group owes 25 per cent more, with a total of £41,400.

Managing director of the company John Fairhurst noted that although many people expect to have loans paid off by that stage in life and be saving for retirement, the average 50 to 60-year-old takes 11 years to pay off unsecured loans.

He added that consumers in their 50s can often afford "little more than interest charges" and offered advice for those hoping to maintain a good standard of living.

"It is vital that they have a clear plan in place for becoming debt free whilst they are still working," said Mr Fairhurst.

This week the Financial Services Authority raised concerns about insurance sold alongside unsecured loans, finding that many customers are not told that they will be charged interest on the cost of the insurance.

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