Pensioners forced to resort to plastic
PENSIONERS owe £1.1 billion on their credit cards, the highest debt in seven years after a 20 per cent hike in borrowing on plastic since the start of the year.
New research by Gfk NOP found that pensioners are now putting an average of 1.6 billion a month on their credit cards. Britain's retirees spent an average of 354 on plastic in June alone, a level exceeded only in October 2008 during the run on banks.
The 1.1bn outstanding debt for June was up from 900 million just six months ago, according to Gfk. It said the rising cost of living and the loss of vital income from savings since interest rates plunged to a record low of 0.5 per cent last March had forced pensioners to resort to credit to cover their shortfalls. With benefits set to increase at a lower rate and VAT increase due in January, pensioners are likely to put even more spending on their credit cards, Gfk added.