OAPs opting for equity releases to pay off mounting debts

28/07/2011

Crippling debts are forcing pensioners to turn to equity release outfitters to release capital from their homes.

According to Consumer Credit Counselling Service’s (CCCS) equity release service, they are regularly helping the elderly to release tied up cash from their homes to pay off debts.

In the last year alone the service helped elderly homeowners unlock an average of £29,983 of capital from their homes to pay off debts and meet other costs.

Home owners over 55 who contacted the charity owed an average of £29,772 on credit cards, personal loans and other unsecured debts.

Tom Moloney, equity release manager at CCCS, said: “Many clients are rightly cautious when considering equity release, but with the right advice and guidance this is an attractive solution for some – especially for those who wish to resolve their debt problems without moving home.”

Equity release allows homeowners to obtain part of the value of their home as income or a lump sum, without moving out of the property.

Although this is a viable option for those who wish to free up money, it is nevertheless a complex option and still important to seek independent financial advice before doing so.

Tags; Housing Debt and Bills, Income Worries and Debt, Budgeting Advice, Retirement Money Problems,

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