The news comes as research released by the Welsh Centre for Credit Counselling revealed that the overall amount of money owed by people in the principality via loans, overdrafts, plastic cards and other types of borrowing is falling. However, it would appear that older Welsh residents are struggling with their money management as they are an average of 30,000 pounds in the red, which could see such consumers begin to fall behind in making repayments on personal loans and other demands on their spending.
Research from the charity also revealed that the level of those looking to the charity for advice on their borrowing has more than doubled over the course of the past five years up to nine per cent. Meanwhile, it is consumers aged 40 to 59 that appear to be experiencing the most difficulties with debt, as they are set to make up 41 per cent of people visiting the centre. In addition, Welsh women are experiencing greater difficulties with debt than men. And with 44 per cent of Welsh people looking for help with money management said to be homeowners, in comparison to the British average of 39 per cent, these people may have particular problems in paying back secured loans taken out against their property.
Meanwhile, a spokesperson for the Welsh Centre for Credit Counselling claimed that such figures are a "worry", before stating that they make up part of the increasing problem in handling loans and other areas of financial burden that has been seen across the country.
The representative said: "You would be hoping people, especially in their late 40s and 50s, to be paying back their debt to be saving for their retirement. It's quite a marked trend. It may also be that people find it difficult to adjust to retirement and lower incomes. It may also be that people, if they own a property, think they have equity in their property, that perhaps the debt can be paid out of the equity."
Overall, some 6,000 people are set to ask the centre for advice over the course of this year - an increase from the 1,000 it recorded five years ago. Meanwhile, research from Citizens Advice showed that the proportion of personal debt enquiries in Wales has risen from 66,644 in 2005-06 to currently stand at 91,368 in 2006-07. However, a spokesperson for the advisory service stated that debt problems across all countries have surged and should not be particularly attributed to older people.
"Anecdotally, bureaux will see older clients on a low income committing to active credit commitments and being unable to manage their debt due to low financial capability and also irresponsible lending, particularly when it comes to unlocking money from their properties and also with maintaining larger properties," he said.
However those who find that they are unable to make any repayments may wish to take out a debt consolidation loan ahead of filing for insolvency through an individual voluntary arrangement or bankruptcy as doing so could leave them with greater financial freedom. Earlier this year, James Jones, consumer affairs manager for Experian, stated that people who choose insolvency ahead of a debt consolidation loan may discover that their access to jobs, property and cheap loans in the future is restricted as a result of damaging their credit history. Taking out debt consolidation loans could see borrowers reduce outgoings into one low-rate monthly repayment, helping them to free up more disposable income, without causing unnecessary harm to their financial report.
In a study carried out by RIAS it was indicated that many Britons over the age of 50 are getting on the information superhighway. According to the financial services provider such consumers account for just under a third (30 per cent) of all internet users, the fastest-growing demographic across the country. The firm also indicated that about four-fifths (79 per cent) of older online users have visited video website YouTube, while 17 per cent have downloaded either music or a podcast from the internet.
Meanwhile, over 40 per cent of "silver surfers" own a laptop computer, with 92 per cent having made use of a broadband connection. Some 19 per cent were indicated as having a media centre PC. However, it is not just computing in which older Britons are shown to be technologically savvy as slightly more than a fifth have either an iPod or some other form of mp3 player.
For those looking for an effective way in which to finance purchasing a computer, personal music player or any other kind of expensive electrical appliance, taking out a personal loan might be advisable.
Overall, it was indicated that those over the age of 50 account for two-fifths of the country's total consumer spending, while they hold 80 per cent of Britain's personal wealth. However, despite such financial stature that such adults may hold, it was suggested that many consumers could be placing themselves at financial risk. RIAS claimed some people may be undervaluing how much hi-tech equipment actually costs as they - often mistakenly - think such items are less expensive than furniture or jewellery.
In not having an adequate personal possession insurance policy - or indeed lacking cover altogether - it may be possible that Brits have to dip into their own pockets in order to meet the cost of repairs or to replace lost or stolen items. This could have an impact upon their ability to manage other demands on their finances in areas such as loan repayments, credit cards and household bills.
Commenting on the figures, Janet Connor, managing director for RIAS, said: "The readiness to adopt new technology being demonstrated by the over-50s doesn't surprise us. We know from feedback from our customers that items such as computers, laptops, mobile phones and iPods/mp3 players are no longer considered 'gadgets', or as the domain of the young, but as essential household items."
"Householders need to reassess and, if necessary, update the value of their home contents to account for these new purchases and ensure all their possessions are adequately covered by their policies," Ms Connor added.
For those consumers on the lookout for a high-performance PC, an iPhone or some other expensive technological gadget, obtaining a personal loan may be recommended. Getting a loan may also provide borrowers with enough disposable income with which to take out a comprehensive insurance policy.
Meanwhile, getting a loan may also be recommended for those consumers who are looking to for an effective way to finance their passion for football. In a study carried out by Virgin Money in March it was revealed that the typical supporter spent some 1,080 pounds in 2007 getting behind their team in areas such as tickets, merchandise, food, travel and programmes.
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