ACCORDING TO new research, one-in-four over-50s insist they would never borrow money.
A survey of 9,482 over-50-year-olds conducted by Saga Loans revealed that more than two-thirds would always use cash savings over borrowing money.
Age did appear to play a factor in willingness to borrow, with those in their 50s much more likely to consider borrowing than those in their 70s and beyond, possibly due to a desire to keep their growing pension pots untouched.
“Of course with some people working longer, they are able to afford to borrow later into life than previous generations, but it seems that people also have a very sensible approach, preferring to use savings if they can, mostly borrowing for bigger expenses and trying to ensure they repay the credit over as short a term as possible,” said Gloria Barker, head of loans at Saga Money.
Despite many appearing reluctant to borrow money, one-in-five respondents still in work said that taking on credit helps them live the type of life they want to lead.
Cars and home improvements were the most typical purpose people considered for borrowing money, with those in the North East much more likely to consider borrowing for these big expenses than elsewhere in Britain.
People over 50 said they were more focussed on paying the debt back as quickly as possible, rather than borrowing the most they can afford. The option to make overpayments was also more popular than choosing a shorter loan term.
“The biggest surprise to us is that so many people, particularly in their 50s, have become so used to using credit that they now feel it is a part of modern life: it seems that the babyboomer generation has torn up the rule book again,” Gloria added.
