The following is a sponsored guest post from Money Super Market.com.
Baby boomers across the pond are struggling to cope with their borrowings, with one in three currently unable to clear their debts, according to new research.
Insurance group Aviva’s fifth ‘Real Retirement Report’ found that almost a quarter (23%) of those surveyed said they didn’t expect to be debt-free until they were at least 75-years-old, and one in seven (15%) said they don’t think they will ever repay what they owe.
The survey of nearly 6,000 consumers over the age of 55 carried out in February shows that debt is a growing issue for our British baby boomer cousins.
Credit cards were the biggest burden for the over-55’s, with 30% of 55 to 64-year-olds having credit card debt that is not cleared each month.
One in five of those surveyed said they had gotten into debt because of family obligations, and 4 per cent said they had considered going into debt for a major family event like a wedding.
Of course credit card debt isn’t unique to the UK, and although credit card debt has reportedly been decreasing, the fall has been attributed to the number of write-offs. (Huffington Post)
If you’re struggling with credit card debt, here are some tips you can use to try and get it cleared as soon as you can.
First off, if you’re paying as much off as you can every month, but the balance on your credit card isn’t going down, then perhaps the card carries to high an interest rate.
Shopping around for a credit card with a lower rate than your current card, (preferably a 0% balance transfer card) might be something to consider, as it will help those monthly repayments you’ve been making have a bigger effect on the overall balance.
You’re more likely to be offered the more attractive credit card rates if you have a good credit rating. Your credit rating is a measure of your ability to pay back what you borrow, which potential lenders use to assess your eligibility for credit.
Making sure your credit profile is accurate and up to date is important, as it will help to make sure you are in the best possible position for lending in the future. You can check your credit report online for a small fee at either Equifax or Experian and if you find any errors you can contact the relevant lenders and ask them to correct the mistakes.
Planning and sticking to a repayment plan should be your next move. Work out how much you would need to pay each month to clear the balance as soon as is practically possible.
ReadyForZero is free online credit-repayment planning tool offering a source of advice and guidance based on the amount you owe, how many credit cards you have and their respective rates.
The sensible thing to do is to live within your means and not rely on credit to pay for things you can’t afford, but if you’re in a similar position to our friends across the pond, then paying off the debt largely comes down to proper planning and discipline.