Debt Situation Continues to Worsen for Everyone
The debt of young adults and those in their twenties has been getting a lot of attention over the past few years, but now, the debt of those who are approaching retirement age is also making national headlines as according to a new report published this week by a leading debt charity, the debt among those in their sixties and older has been rising steadily over the past two years.
According to the report, the average 60+ year old person who contacted the Consumer Credit Counseling Service (CCCS) had a debt of £33,568.This is a 25% increase from last year.
Still the level of debt that many who are within the ages of 18 and 24 is getting the most attention. Over the past two years, the average amount owed by 18 to 24 year-olds has increased by 26 per cent over the past two years, from an average of £11,934 in 2003 to £15,079 in 2005.
The report went on to saw that those who ordered a CCCS debt management plan, where “interest on debt is frozen in exchange for a set amount being repaid each month”, had an average debt of £30,763 in 2005. This is a increase from £29,340 just the previous year. TRhe report said that more people are in extreme debt as well. In 2005 2.7 per cent of all CCCS customers had a debt of £100,000 or more, while this statistic was just 1.4% in 2004.
Stuart Glendinning, Managing Director of www.moneysupermarket.com, the price comparison website, said: "It’s no surprise that debt levels are rising and that increasing numbers of people are getting into difficulty, but it is disheartening to discover that it is the older age groups whose debt is rising the fastest. This report is a fresh reminder that debt crisis is becoming more and more of an issue."