Wednesday 15th of September 2010
Individual voluntary arrangement (IVA) answers could come to the assistance of cash-strapped over-50s who want to make sure they are able to rein in their spending on credit cards before they retire.
New figures from GfK NOP show the credit card debt of Britain's retirees is at a seven-year high, with an average of £1.6 billion being put on plastic every month.
The study shows this is a 20 per cent increase compared to the start of the year.
Seeking answers on IVAs may, however, be a sensible option for older UK adults who have not yet finished their career but want to erase their unsecured debts before they start spiralling out of control in retirement.
That's because the method of insolvency is only available to those in full-time employment, but when used effectively it can help chip away at money owed on credit cards worth more than £15,000 over a period of around five years.
And an IVA may demonstrate the level of discipline needed to ensure you don't start spending beyond your means once retired.
Commenting on the findings, Davyd Edwards, financial researcher at GfK NOP, says: "Pensioners are piling more than ever before on the plastic and keeping it there."
By Rachel Powell
- 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
- IVAs could be used by self-employed Brits to clear debt
