Wednesday 10th of February 2010
If you are close to retirement and worried about how your unsecured debt will impact upon your ability to enjoy your time out of work then now may be the right time to get your answers on individual voluntary arrangements (IVA).
A new survey from Aviva reveals that some Britons over the age of 55 are still working to pay off their debt. You may have wanted to retire a while ago but feel you cannot because of your credit card and personal loan bills.
IVAs can help you meet these repayments, however, as they freeze the interest rates on personal loans and credit cards, making monthly payments more manageable.
But as someone in their 50s or older, you may be worried how an IVA will impact upon your assets you have worked hard for, such as your home.
As long as you keep up with your new, lower, single monthly repayments there is no reason why your family home should be repossessed. And your friends and colleagues do not need to know about your IVA because, unlike bankruptcy, it is a private matter.
The survey by Aviva shows that pre-retirees have the highest level of debt. Individuals aged between 55-64 are the ones over the age of 55 who are least likely to own their own home.
People in this age group may have accumulated large debts over their lives as credit was much easier to access and relying on credit cards and personal loans had less stigma attached.
But now your dreams of soon retiring may be put on the backburner until you can clear your debts. You should not be ashamed of asking for help with your debts - no matter how old you are - and an IVA could help.
Commenting on how people could enter retirement with fewer cash concerns, Clive Bolton, at-retirement director for Aviva Life, says: "Although we would strongly advise people to start saving for their retirement as early as possible, we also need to ensure that those approaching retirement have access to the right information and support to maximise their income in their later years."
By Neil Burton
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