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More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

Inflation not the same for everyone

28/11/2008

Inflation may have stood at 4.5% in October, but different age groups are effectively facing an inflation rate of anywhere between 4.2% and 7.1%.

People of different ages tend to spend money on very different things, the Alliance Trust points out.

Those in the under-30s group, for instance, spend an average of 4.2% of their budget on petrol, 3% on electricity and gas and just 8.5% on food. They’re facing an overall inflation rate of 4.2%

Over-75s, on the other hand, devote just 2.5% of their budget to petrol, 6.9% to electricity and gas 16.3% to food. They’re facing an overall inflation rate of 7.1%.

“It’s easy to see why people of different ages can have a very different picture of the cost of living,” said a spokesperson for Debt Advisers Direct. “Today, the cost of petrol may be coming down, but gas and electricity prices are as high as ever – and these figures from the Alliance Trust are a vivid reminder that the official inflation rate is an average, made up of many different figures.

“Of course, inflation isn’t the only issue affecting different age groups in different ways. When it comes to debt, for example, different age groups can have different priorities. For someone in their 30s, a £5,000 debt may be quite manageable, while someone in their 70s could find a £1,000 debt almost impossible to repay.”

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

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