Tuesday 1st of September 2009
Britons who are approaching retirement should attempt to pay off their debt before they leave the workforce, it has been advised, which could include undertaking an individual voluntary arrangement (IVA).
A fifth of people who contact the Money Advice Trust are over the age of 50, spokesperson for the oganisation Becky Wilks says.
This age group is particularly concerned about their financial standing because they need to make their money go further so they can live comfortably during retirement.
As such, seeking IVA advice as soon as possible could ensure that debts are paid off before they leave employment.
Ms Wilks states that it "is important to try and pay off your debts because whatever you have paid into your pension now is not going to increase, whereas if you are still working you may get a better job or receive a pay rise".
Indeed, an IVA could freeze the interest on unsecured debt, giving older Britons more of a chance to meet all their financial commitments.
Recent research from Scottish Widows found the average outstanding non-mortgage debt of retired people stands at £7,344.
By Neil Burton
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Bankruptcy and IVAs predicted to rise
