Over 50s Hit Hard by Credit Crunch
Writes Dan Drage dan.drage@consumerchoices.co.uk
It’s the over 50s who’re bearing the brunt of the credit crunch according to new research conducted by the Post Office.
Responding to questions posed by the Post Office (www.postoffice.co.uk) in June 2008, 47% of over 50s conceded they are using credit cards to fund their day to day purchases (such as food, clothing, fuel and travel). 76% of all over 50s surveyed had at least one or more credit cards.
This trend was even more prevalent in the over 70s, with 64% regularly using credit cards to buy groceries.
A third of all respondents in the 50 and over category consider savings to be an aspiration rather than an actuality, as they’ve been unable to save a penny since the start of the year. 57% admitted they simply couldn’t afford to put savings away because their day to day costs are so high.
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"A third of all respondents in the 50 and over category consider savings to be an aspiration rather than an actuality"
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Duncan Caesar-Gordon, Post Office Head of Protection, had the following to say:
“In an economic climate where living costs are soaring over 50s are finding they cannot afford to save and are more reliant on credit”
He continues:
“Thinking about the future and how the family will cope should the unexpected happen is an extra worry but a simple life plan can offer peace of mind to those concerned about passing on funeral costs and debts.”
Chris Eagle, Commercial Manager at Credit Choices, has some words of advice:
“You should not give in to the temptation of a credit card. Even if you’re having money problems, your income will be static so you need to ask yourself how likely it is that you’ll be able to pay back what you’ve borrowed. Try to save money by switching utilities suppliers instead, and make sure you’re getting all the benefits you’re entitled to.”
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