Thursday 12th of November 2009
More than three-quarters of over-50s who apply for credit cards are accepted immediately - but at this time of life an individual voluntary arrangement (IVA) could be a more attractive route towards financial security.
Research by price comparison site Confused.com shows that 77 per cent of older people have no trouble in securing credit.
But by taking credit at an advanced stage of a career could create problems - such as debts mounting up when people should be saving for their retirement.
Some workers may even be forced to stay in employment longer than they planned because they require funds to pay off credit card debts accumulated in their 50s.
Joanne Garcia, head of credit cards at Confused.com, said: "Those with existing balances should make every effort to clear them as soon as possible. Ignoring the debt, resulting in closure of an account by the credit card company, is not advisable."
An IVA could help to reduce debts by consolidating repayments into one manageable monthly sum - which could reduce the need to seek further credit.
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
- An IVA could help you meet your dream of paying off your mortgage
