Risk of debt: over-55s hit by urge to splurge
The urge to spend, spend, spend is understandable after constant lockdowns, with millions of people looking to splash out on big-ticket items such as cars, mortgages and home renovations.
The over-55s will take on another £10billion of debt this year, driving their total borrowings to an astonishing £236billion, according to research carried out by the Centre for Economics and Business Research on behalf of equity release lender More2Life.
Yet more than one in four say their financial situation has got worse since the first lockdown in March last year, and the pressure to spend will only add to their money worries.
Many delayed purchases and tightened their belts last year but now feel under pressure to spend as the economy opens up.
More2life chief executive officer Dave Harris said that many over-55s will struggle as furlough ends and spending returns to normal: “Some are turning to short-term debt such as credit cards, and borrowing could very quickly hit unmanageable levels.”
Britons saved an extra £117billion and paid down £59billion of debt during lockdown, according to research from Virgin Money.
