Have you ever asked your parents or grandparents what their financial situation looks like? The latest Credit Checker data does not bring positive news. People aged 65+ have trouble returning the outstanding balance. And what does it look like when paying current bills? Let’s check the details.
The reason is low pensions in relation to the high costs of current expenses – medicines, bills, daily purchases. How do they deal with repayment? Are they able to systematically pay installments? We present the latest data.
Seniors are often forced to make use of quick loans or credits
Regular bills are a piece of cake for seniors. In a word, they are second to none. People 65+ are regular in paying their debts – only 13 out of 1,000 of them have problems with it, which is 1.3%. Due to their timeliness and reliability, they are ahead of all age groups in this respect.
The Good Finance report, regarding late payment of liabilities, shows that the average percentage of unpaid for at least 60 days from the date of non-credit accounts is 4%.
This applies to all regular charges for telephone, media, TV, maintenance, rent, payday loans or arrears sold to debt collection companies.
Who has a problem with that?
The study “Poles’ behavior related to bill payment”, which was conducted by Millward Brown on behalf of Credit Checker, also shows that it is the older generation that is not forgetful. Only every tenth person aged at least 60 years has happened to forget to pay the bill on time.
The biggest problem with the timely payment of current payments is for people aged 35-44, followed by those slightly younger – 25-34 years old. If we divide seniors into regions, we will find the largest delays in fees in the Śląskie, Mazowieckie, Dolnośląskie and Wielkopolskie Voivodships. The best are pensioners living in Podlasie and Opole.
What about loan installments?
The repayment of loans by older people does not look so colorful anymore. As many as 4.7% of seniors have problems with this. Total liabilities – recovered and overdue – exceed USD 4 billion. Most unpaid arrears have people aged 35-44 (there are 474.2 thousand), then 25-34 years (442.1 thousand), 45-54 years (355.8 thousand), 55-64 years (318.6 thousand), and before the 65+ seniors (265.6 thousand) there are only the youngest, aged 18-24 – there are approx. 119.8 thousand As you can see, the elderly are also here at the end of the ranking, but their number is large.
Credit Checker data also allows you to compare the backlog in different age groups. The average debt of a pensioner is USD 15,296, which places him 4th.
Behind them are people aged 18-24 with an average commitment of USD 14,792 and 25-34 years having to pay an average of USD 14,347. Record holders are 45-54 years old with a debt of USD 27 574. Senior debt is, therefore, half as much as the representative of the “winning” group.
The government is still working on a draft amendment to the law on pensions from the Social Insurance Fund. It aims to provide the survivors of indebted pensioners with the means of living. How? In the event of bailiff’s actions taken because the senior citizen did not settle his obligations, he will be forced to leave the debtor with an amount equal to the value of the minimum benefit. For pensioners, it will be 880.54 USD, and pensioners – 675.17 USD.