According to a new report, an average person in the UK is likely to remain in debt until they are 69 years old, despite most hoping to be free of debt by the age of 57.
A report produced by the Centre for Economics and Business Research indicates that most people believe that they will have paid off all debts, including their mortgage, by the time they reach 57 years old. However, it is more likely to be age 69 before debts are finally paid off.
The survey questioned 2,000 people about their expectation of when they would finally be debt free. The figures were then compared with information from the Office for National Statistics, which indicates the levels of debt in households. According to Zopa, a peer to peer lender, people who are just reaching adulthood can expect to reach an older age before they have fully paid off their debts.
The age group which is most likely to remain in debt for longer is the 35 to 44 years old, mainly due to mortgage payments. The average debt in this age category is £87,800, possibly due to people puchasing their first home later in life, generally at around 31 years old. The most optimistic age group is the 18 to 24 year olds, who expect to be debt free by 38. However, this age category is likely to be aged 66 by the time all debts are paid off, which includes student loans.
To make sure that you are taking a mortgage on the most favourable terms, consult a mortgage adviser who has trained for CeMAP.
