Bankruptcy has doubled for the elderly
Senior Citizens are responsible for 7% of all bankruptcies in the UK, which is an increase of 3% in comparison to 2004.
Nearly 7,900 pensioners have succumbed to bankruptcy within the past year. This is a tremendous leap from 2002, when only 900 OAPs became insolvent.
As the average life span increases, the elderly are finding it difficult to survive on their restrained savings. Recently retired pensioners find it difficult to adjust to a substantially reduced income and are falling behind with payments on credit cards, loans and other debt.
Many pensioners have small part-time jobs to help subsidise their pensions but in rural areas, employment is becoming increasingly difficult to find. There is also a lack of free public transport which puts a further strain on their finances.
The older generation find it difficult to come to terms with debt and try to cope by themselves. It is only when they receive constant abuse from creditors that they start to worry. For many, their debt has gone past the point where an IVA or debt management plan would help, and bankruptcy becomes the only option.
Some pensioners re-mortgage their properties so as they can pay off any outstanding debt. However, new debt simply replaces the old and they risk losing their homes.
Pensioners often feel embarrassed about money worries and keep these matters to themselves. They avoid telling family members for fear of becoming a burden.
If pensioners ring a debt helpline, they will find instant reassurance to their money worries. Many who have suffered in silence for years have felt instant relief after seeking debt advice.
