Tuesday, August 5, 2008

Post Office: Over 50s hard hit by credit crunch

Almost half (47 per cent) of people over 50 are using their credit cards for day-to-day purchases as the credit crunch hits, the Post Office has found.

Reliance on credit for this age group has increased as living costs rise, with 64 per cent of the over 70s regularly buying groceries on credit.

One third of over 50s are unable to save regularly, while 57 per cent of over 70s who do not save say they cannot afford to.

The Post Office advised those over 50 to ensure they are not over or underpaying on their life insurance.

Duncan Caesar-Gordon, Post Office head of protection, said a life plan offers "peace of mind" about such worries and funeral costs and debts.

Most over 50s are worried about the credit crunch, recent research by Millennium revealed.

Finance Markets reported the research, which also found that despite concerns about investments and pensions, three-quarters will not give up holidays, dining out or charity donations and more than half believe their savings are safe in their present bank or building society.

source moneynews.co.uk

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