Sunday 24th of January 2010
The average age of individuals who seek advice about debt - which could include getting answers on individual voluntary arrangements (IVA) - has risen, a claim suggests.
According to the Consumer Credit Counselling Service (CCCS), the proportion of clients over the age of 60 more than doubled between 2004 and 2008.
Such people tend to have higher debts. Those with debts of more than £15,000 could find an IVA proves to be of assistance.
Older individuals may want to avoid being declared bankrupt because of the impact this could have on their assets they have worked all their life to protect - such as their home.
Unlike bankruptcy, an IVA can protect a person’s home so long as they keep up with the reduced level of monthly repayments.
"The generation which cut its teeth on the credit card has reached retirement age with higher debts than previous generations," Malcolm Hurlston, CCCS chairman, says.
CCCS adds that older Britons are often asset-rich but cash-poor, which could mean an IVA is a more favourable alternative to bankruptcy as assets may be protected, rather than sold to raise cash to clear debt.
By Chris King
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