Over-65 and in debt
Older Australians and retirees are being forced to live on credit to cover basic living costs, with bad debts soaring among over-65s. According to a report from credit research company Veda, older Australians were racking up debt faster than ever but could not afford to repay it.
Older Australians and retirees are being forced to live on credit to cover basic living costs, with bad debts soaring among over-65s.
According to a report from credit research company Veda, older Australians were racking up debt faster than ever but could not afford to repay it.
The report, provided to BusinessDaily, revealed the debt default rate for people over 75 years had soared more than 200% in the past decade.
The Herald Sun reported Veda general manager of consumer risk, Angus Luffman, as stating for over-65s, the default rate had jumped 150%.
While younger Australians were reducing the use of their credit, Mr Luffman claimed they remained concerned about the debt levels of older Australians.
About 6% of over-65s reportedly had more debt this year than last year. Five years ago, only 3% of this age group claimed their debt had increased.
Most debts related to living costs such as utility and telecommunications accounts. Experts claimed it may be difficult to reduce spending when a person reached retirement and the supply of “easy credit” was a major problem.
Struggling with the dollar signs? Experts recommend obtaining advice from an independent financial counsellor.
