People aged between 50 and 64 years old could soon find themselves in need of debt help as it has been revealed individuals in this bracket face the highest rate of inflation.
According to figures from the Alliance Trust Research Centre, it is the ninth consecutive month consumers of that age have been hard hit and the rate for these consumers now stands at 4.5 per cent.
Such a position has been reached and maintained primarily because these people spend more of their disposable income on transport, which is where inflation remains at the relatively high level of nine per cent.
People may be placing themselves at risk of falling into debt by not keeping on top of their mortgage details, new statistics have suggested.
Research published by the Consumer Financial Educational Body (CFEB) revealed 74 per cent – almost three-quarters – of mortgage holders do not know the effect an interest rate rise of one percentage point could have on their monthly outgoings.
The study discovered 51 per cent of home-loan owners think their interest rates will alter within the next nine months.
However, 14 per cent admitted they are unsure of the type of rate – be it a fixed, standard variable, tracker or discounted rate – they are currently paying.
If their mortgage payments were to rise by £200 per month, 14 per cent of mortgage holders – which equates to around two million homeowners – stated they do not know what they would cut back on.
More than half of them (54 per cent) claimed to have no plans in place to review their home-loan situation or said they will leave it until the very last minute before implementing them.
Around 1.3 million mortgage holders with a deal in place revealed they are not aware of when it will expire.
Tony Hobman, chief executive of the CFEB, said of the possibility of rising interest rates: “It is clear from our research that many people with mortgages haven’t thought about what it would mean for their monthly payments.”
Recent research carried out by Moneyfacts.co.uk discovered the cost of a fixed-rate mortgage had dropped to 4.53 per cent – the lowest it has stood since September 2003.
Individuals may experience a debt-ridden retirement rather than the comfortable one they envisage, new research has suggested.
A study by Aviva has revealed many of the Baby boomer generation – today’s over 55s – plan to use their time off after their working life concludes to broaden their world experiences and enhance their social lives.
The survey found 43 per cent of retirees see the period as the beginning of a new lease of life, 23 per cent plan to travel the globe and 62 per cent hope to improve their fitness.
However, the investigation discovered over half of the people in this age bracket who earn £20,000 to £30,000 a year have saved less than £30,000 for when their employment terminates.
Clive Bolton, ‘at retirement’ director for the organisation, noted many will struggle to fund the lifestyle they desire.
Head of pensions and marketing at Friends Provident Martin Palmer recently noted the decision to scrap the default retirement age could pose a number of problems for Brits reaching the end of their careers.
A number of Britons could soon be facing debt troubles as the nation may experience severe job losses due to the recent emergency Budget, it has been suggested.
According to the Guardian, the Treasury assessment of the planned spending cuts could result in 1.3 million individuals being forced out of work over the next five years.
The figures revealed the government is expecting between 500,000 and 600,000 jobs to be dispersed in the public sector and between 600,000 and 700,000 more in the private sector by 2015.
Public sector employees will feel the brunt of the 25 per cent inflation-adjusted reduction in Whitehall spending over the next five years, while employment in the private sector will be especially affected by government contract losses and lower public spending, the report added.
The Consumer Credit Counselling Service recently warned the VAT hikes announced in the Budget could be the final straw for those struggling with debt problems.