People in or approaching retirement should consider other options of borrowing such as equity release rather than credit cards according to Dave Harris, chief executive at more2life.
UK Finance figures showed the annual growth rate of outstanding balances on credit cards stood at 3.3% in October.
There were 1.7bn debit and credit card transactions in October, 8.4% more than a year ago.
Harris said: “Although the annual growth rate of credit card debt is slowing down, this form of unsecured borrowing is still seen by many consumers as a viable solution to help them fund their everyday needs.
“And, after the indulgences in the run up to the festive season, it’s likely even more people will be checking their bank statements nervously.
“However, for many people – especially those in and approaching retirement – borrowing is not for luxuries but to cover unexpected expenses and simply to keep on top of household bills.
“For retirees, who are typically on small and fixed incomes, meeting the cost of borrowing on a credit card can be crippling.
“Credit card loans usually come with a higher level of interest than other forms of borrowing and with an additional requirement that borrowers make minimum repayments every month.
“The reality is that other, more viable borrowing options including those that make use of housing equity are available to older consumers, yet many are unaware of this fact.
“This is where the value of advice really becomes clear.
“Specialist advisers are on-hand to guide retirees to the best financial solutions for their needs and help them live more comfortably, without the worry of debt on their shoulders.”