Britain’s Baby-Boomers Face Massive Credit Card Bills

If you’ve been following the recent British media coverage expelling the virtues and hardships of Britain’s baby-boomers, you’ll no doubt have seen and read a number of very interesting stories.

What’s not at doubt is that the generation of Brits who grew up following the end of the Second World War have seen massive changes in British society during their lifetimes. Not least among these changes is how to handle and cope with credit card debt - something which did not even need to be considered until 40 years ago this year. What you may not have heard, however, is the problems that Britain’s baby-boomers are now facing trying to make sure that they’ve cleared all their credit card debt before they reach the golden age of retirement.

Only last week news broke of what is thought to be Britain’s biggest credit card debtor, owing a total of £416,000 to 57 different credit card issuers. As it happens the unnamed 56-year-old happens to fall squarely into the bracket of baby-boomers in the UK reaching the golden age of retirement.

While this may sound like an unfortunate one-off, “not so” would be the reply from the Consumer Credit Counselling Service (CCCS), a registered charity helping people in financial difficulty, who contend that unlike the rest of British society the over 50s have actually increased their credit card spending habits over the past 12 months. Moreover, 23% of debtors seeking free debt counselling from the CCCS are over the age of 53, up from 19% previously. The average credit card debt among the over 53s seeking debt counselling from the CCCS was also slightly higher than the national average at £12,422.

Known also as the Barclaycard generation, baby-boomers in the UK have grown with increasing credit available on tap. This is also the first generation of Britons who have had to learn how to repay the massive levels of debt that has been continuously advanced to them throughout their lives to-date. These latest figures from the CCCS, together with the recent news of the 56-year-old credit card debtor owing close to half a million pounds clearly indicate that this lesson has been a hard one for Britain’s baby-boomers to learn.

However, as with many of the changes and challenges that British society has had to face in the last 50 years, this is one that the baby-boomers are having to learn to blaze their way through. Very clearly, however, it’s also one that those who have followed have, sadly, yet to master.

Richard Smith
24th August 2006

More Information:

• The Right Card for You - information from Choosing and Using, APACS' website
  Different credit cards will suit different people. The best credit card for you will depend upon how you intend to use it. Before you choose a credit card you should decide why you want it and how you intend to use it.
• Causes and Cures Of Credit Card Debt
  For some, credit cards can prove a temptation too far, and soon they find themselves in debt. Simple precautions will keep the savvy card holder from such dangers.
• Credit Card Types
  Credit cards have evolved from their early days into flexible financial tools for most types of spenders – and savers. But with so many types of credit cards on offer it can be somewhat overwhelming.

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