Almost 500,000 pensioners face debt recovery action or insolvency because they are struggling to pay their bills.
The rising cost of living and low interest rates are slashing their spending power.
The official measure of inflation, the consumer price index (CPI) is running at a 20-year high of 5.2%, while annuity and savings rates have plummeted, which mean anyone trying to eke out a living on a fixed income faces some difficult spending choices.
A recent debt survey reckons that 427,000 pensioners over 70 years old have no money left after paying their living costs each month.
These pensioners are falling behind with repaying any borrowings, like credit cards or store cards, and are even facing debt recovery action from banks and retailers. Some are even facing bankruptcy.
Behind the figures, the personal tragedy for the elderly is one in eight of the over 70s have debt problems - and more will slip in to the net if inflation continues to rise and interest rates stay low.
Unfortunately, the elderly have no option to earn extra income and face a stark choice. Many cut back on essentials like food and warmth or consider equity release if they own their own home.
Another alternative is a financial management plan that reschedules repayments on borrowings.
Some lenders will consider freezing interest and charges on borrowings, or even writing off some credit balances.
Financial management generally works for anyone with a monthly disposable income after paying their living costs.
For those that have no disposable income, other debt solutions are available, depending on personal financial circumstances.
Best advice for pensioners with money problems is to take action sooner rather than later. Debts will not go away and as the arrears mount, the choices for dealing with issue fall away.
Taking financial management advice is a chance to put a brake on runaway debts and lets an independent professional give impartial advice on the best way forward.
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For more information or debt advice contact:
45 Clarendon Road, Watford WD17 1SZ
Tel. 0800 16 999 46
Image: Simon Howden
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