Debt-free life begins at 50 for big spenders in borrowers' Britain

With increased borrowing, mounting credit card debts and student loans, consumers are not far off retirement before they finally pay off what they owe.

Researchers have found that, by the age of 50 years and 90 days, the typical adult will shake off the shackles of debt.

The survey, conducted by Your Money Matters, a personal finance exhibition in London's Docklands, found that, until this time, the average Briton is saddled with unsecured loans for a variety of purchases, excluding mortgages. By the age of 50, they have paid off student loans, overdrafts and other borrowings for cars, furniture and the latest electrical gadgets.

Until then, the average Briton is in debt to the tune of 10,306. Men are deeper in the red, with debts totalling 12,631, while the average woman owes 7,982, excluding any mortgage.

To pay off their debts, people use a mixture of salary, inheritance, windfalls and profits from investments.

Research shows that men will, on average, spend more than three years longer to get themselves in the black.

Men will typically be debt-free at the age of 52 and three months, while the average age for a woman to get out of the red is just 47 years and two months.

Stuart Glendinning, the managing director of Moneysupermarket.com, a personal finance website, said it was too easy to obtain credit in Britain and most people simply refused to save up for luxury items.

"The findings are grim, but believable. It's easier to get credit from banks and building societies but there has also been a change in attitude.

"Younger people seem less willing to forego consumer durables until they can afford to buy them out of their savings.

"There are a lot of people in a cycle of debt. They're paying for credit over ten to 15 years, which means they may not pay it off until their retirement."

The regional picture shows that Londoners clear their debts earliest, probably thanks to bigger salaries and profits from property sales. They start celebrating financial independence at 42 years and 11 months, almost a decade earlier than the national average.

In Scotland, debt-free status comes at an average age of 49 years and six months, while the Welsh are the hardest done by, suffering at the hands of creditors until they are 53 years and one month old.

A spokesman for Your Money Matters said: "As the cost of living continues to rise, we're being forced to save through our twenties and delay the major milestones of life until our thirties.

"On top of that, the average cost of a house is now well over 200,000 so we're not even getting on the housing ladder until 34. All of this and the average UK salary is just 25,986 for men and 20,488 for women, so it's no surprise that the majority of us are hitting our fifties before shaking off the shackles of debt."

HOW TO STAY DEBT-FREE

Avoid credit and only buy what you can afford from your income.

Avoid store cards.

Shop around for the most competitive mortgage deal.

Visit an independent financial adviser who will find the savings and investment plans most suitable for you.

Use your tax-free individual savings account (Isa) allowance each year.

Invest in a pension from an early age.

Set a realistic budget for future spending.