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Consumers `increasingly experiencing debt problems` Over-50s `better at managing credit card debt` New banking rules `may restrict access to loans` UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter`

Retirees` finances `may be damaged by rate cut`

18/03/2009

The recent reduction in the UK`s base rate of interest of 0.5 per cent may have a detrimental effect on the finances of retirees, it has been claimed.

Last Thursday (March 5th), the Bank of England`s Monetary Policy Committee (MPC) voted to cut interest rates by 50 basis points in a further bid to stimulate the economy.

However, Just Retirement states that the reduction will hurt people who are living off their savings - potentially making them more likely to fall into debt problems.

It said: "The extent and speed of rate reductions since August may have defeated attempts at planning and left pensioners struggling to cope with a rapid reduction in income from their savings, especially once tax is taken into account."

The organisation went on to recommend that people experiencing financial difficulties as a result of the current economic circumstances should consider all their options and seek advice.

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