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Britons over 50 have still got significant non-mortgage debt, with some taking on even more during this recession – unsecured, short-term debt is simply not the answer and those older people must seek professional mortgage advice right away.

Research conducted by moneysupermarket.com has found that whilst more people in the UK are paying off their non-mortgage debt than increasing it, more than half of the country's 50 plus population is still carrying an average of £6,734 non-mortgage debt.

Worryingly, more than a fifth of over 50's have taken on more debt, with five per cent increasing debt "a lot" over the past year. Of those who are still carrying debt, almost one in six believe debt will always be a part of their life, and they expect to live life in the red – and nearly half of those whose debt has increased in the past year said they had gone further into the red in order to keep paying the bills.

Tim Moss, head of loans and debt at moneysupermarket.com, says: "At a time when people should definitely be decreasing rather than increasing their borrowings, the fact that half of the people in this age group are still in debt above and beyond their mortgages is alarming. Those aged over 50 have to factor how long they can continue earning, and begin thinking seriously about their finances in retirement – debts that are currently easy to service could become a millstone round their neck in later retirement years."

For those who have seen significant increases in their indebtedness over the last year, they must go through their household budget ruthlessly, line by line, and identify where outgoings can be cut. They must see how they can save and how they can do what they can while they are still earning. But they should also go to a mortgage adviser – the biggest debt anyone has is their mortgage, so seeing if that debt can be made cheaper must always be considered.

Moss says: "Anyone starting to worry about their financial situation shouldn't bury their head in the quick sand of debt – problems are easier to tackle when addressed early."

SOURCE: Moneysupermarket.com, 05/10/09

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