Nearly one in five will retire in debt this year

Nearly 18% of those planning to retire this year will do so with outstanding debts, according to new figures released by Prudential.  The class of 2012 research looks at the finances and expectations of those planning to retire this year, and found that the average amount owed by debtor retirees is £38,200.

Outstanding mortgages and credit card bills make up the bulk of the class of 2012’s debt.  Half of those with debts owe money on their home loan and more than half are struggling with outstanding credit card bills.

On average, those planning to retire this year with debts will be making monthly repayments of £260, which equates to a fifth of their expected £1,290 a month income.  In addition, men retiring in debt this year are likely to owe substantially more than women, with average debts of £45,300 compared with £29,400 for women.


Source:  Prudential press release 25 January 2012

Credit Action – Debt Stats Round up (March 2012)

  • Every 4.32 minutes someone will be declared insolvent or bankrupt
  • Every 15.28 minutes a property is repossessed
  • 1,797 people were made redundant every day between October and December 2011
  • Citizens Advice Bureaux deal with 8,652 new debt problems each working day
  • The average household debt (including mortgages) is £55,988
  • 860,000 people in the UK have been unemployed for 12 months or more
  • £173,000,000 is the amount of personal interest paid in the UK on a daily basis

The rising cost of motoring

The rising cost of motoring is having a big impact on drivers with 78% of respondents to a Hastings Direct survey saying it has affected how often they drive.  The survey found:

  • 1% of drivers have given up their car completely in order to cut down on household bills
  • 74% of respondents say that they have cut down on using the car – of these, 49% have cut back by at least 25 miles a week, 32% by at least 50 miles a week and 7% by over 100 miles per week
  • 1 in 5 drivers say that they will give up their car if petrol hits £2 per litre, while 12% will buy a hybrid or electric car if prices hit that level


Source:  Credit Action – February 2012 edition

85% of consumers still concerned about their winter energy bill despite mild weather

Despite the mild weather, 85% of consumers are still concerned about their winter energy bill according to new research from

The impact of the 21% hike in energy prices from the end of 2010 has seen the number of people cutting down or rationing their energy use soar to 83% this winter while 5.3 million more households have gone cold to keep their winter energy costs down.

The research also found:

  • 72% have been cold at home this winter, although 53% say that it would have been worse without the mild weather
  • The main reason people have gone without heating this winter is the high cost of energy (71%) rather than the mild weather (24%)
  • 57% of people have already made their home energy efficient and yet still Britain goes cold


Source:  uSwitch press release 3 February 2012

Are you spending more than you earn each month?

If so, you’re not alone.  A survey by Bright Grey has suggested that 33% of UK adults (equivalent to 16 million people nationwide) are either spending more than their salary each month or are just about managing to break even.

Bright Grey’s findings show that 11 million Brits just about match their outgoings to their net monthly salary, with nothing left at the end of the month.  Furthermore, a worrying 4.9 million people across the UK say they are regularly spending more than they earn.


Source:  Credit Action – February 2012 edition