Retired Stuggle With Debts

As new report reveals retired turning to equity release to deal with debts, leading debt solutions provider highlights other options.

According to new research conducted for Age UK, being able to pay off debts has been the motivation for a third of equity release customers, whilst almost half have put it towards essential house maintenance. Focusing on the over-65s and the retired, this latest data highlights the legacy of debt that many families are now facing. Reinforcing these findings, leading debt solutions provider, Atlantic Financial Management, reveals that debt is still very much a factor for the over 60s.

Analysis of the company's current client base shows that of those over 60, almost 15% still have a mortgage and the average unsecured debt for these homeowners is just over £38,000.

"The analysis of our client base indicates a worrying trend, as more and more over 60s appear to be getting into serious debt, struggling to cope with the pressures of the recession" confirmed Kevin Still, Director, Atlantic Financial Management. "For some their savings have been hard hit as a result of the interest rate cuts and for others the prospects of living off the equity of their properties has diminished.

"...for over 60s couples with a mortgage, their average unsecured debt is £38,579 with 9 creditors."

"The prospect of retirement should be a happy and relaxing time, after a lifetime of work. But our figures reflect that not only are some older workers going to stay on in their jobs for much longer, but for those forced to retire there are real concerns of managing their financial commitments."

Atlantic has thousands of clients where one or both of the people on a debt management plan is over 60 and are either retired or facing the prospect of retirement. For these clients, the average level of unsecured debt is just over £27,000 with 7 creditors. But for over 60s couples with a mortgage, their average unsecured debt is £38,579 with 9 creditors.

"The figures for debt in the over 60s has gone up since the recession really took hold, though these numbers have stabilised in the last year", continued Kevin Still.

"...the expert Atlantic team will review an individual's current financial commitments and income and make recommendations of the best debt solution..."

Atlantic offers a full range of debt solutions, including Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs) and Bankruptcy Assistance. For those clients that elect a DMP as the most appropriate debt solution there is a fast-track service which will help an individual start to tackle their debts within a matter of days. For just £69.50, the expert Atlantic team will review an individual's current financial commitments and income and make recommendations of the best debt solution for their circumstances. This includes dealing immediately with any court actions on the individual’s behalf as well as starting negotiations with creditors to freeze interest and charges.

"...we are able to get creditors to freeze interest and charges on the large majority of our clients' credit agreements."

"Our approach is to conduct a thorough review of a client's income and expenditure to ensure that all debts are taken into account and a fair assessment of their living expenses is determined so that they can continue to maintain a reasonable quality of living. Income optimisation to determine a client is claiming all their entitlements is now important, as is looking at reducing expenditure, like energy bills and bank charges." concluded Kevin Still.

"As a result, we are able to get creditors to freeze interest and charges on the large majority of our clients' credit agreements. And that is crucial to stem the debt problems they are facing."

To find out more about Atlantic Financial Management contact us or call 0845 0 30 30 30