Debt Problems for Those Over 45

The global economic recession has affected just about every citizen in some way or another. However, one particular demographic is being hit harder than others. Current figures show that borrowers over the age of 45 are making bankruptcy declarations more than any other demographic. Roughly 38% of bankruptcies that occurred recently involved those people over 45. This figure has increased substantially from previous years almost doubling within a very short period of time. With unemployment increasing and home values plummeting, this situation is only bound to continue.

Some key factors have contributed to this concerning economic situation. In the past two years, the value of the average home has decreased over 20%. Many home-owners are finding themselves in a situation where their mortgage is for a larger amount then their home is even worth, so called upside down loans. In the past, many people were able to fall back on the equity in their homes, but with this asset having dried up, the cushion just isn't there any more. Making this even worse, many have borrowed on the previous equity, making them more and more in debt. Combined with this situation is the fact that more and more citizens are losing their jobs. They are faced with mounting debt and no income.

This situation has led to record numbers of citizens seeking debt advice from various entities. Credit counsellors report record numbers of people seeking resolution for their financial problems. While many are able to take advantage of other less intrusive options, many cannot. They simply have no other option but filing bankruptcy. Making this situation even worse, is that debt advice agencies are finding more and more of their clients from the demographic group over the age of 60. This is even more alarming as many of these people are retired or no longer able to seek employment. Without adequate income, there's little hope for them to resolve their problems without seeking a bankruptcy declaration. In response to the situation, the government has created a debt relief order. This is another alternative for those citizens with low income and assets.

For more information on how you can become debt free, visit the experts at www.debt-free.org.uk