Debt repayment could see pensioners £500 a month better off

09/09/2009

Struggling with debt in retirement is not something pensioners expect, but UK pensioners owe around £183bn according to research carried out by Key Solutions Retirement.

Meeting monthly mortgage payments and paying off loans and credit cards are becoming increasingly difficult for the nation's ageing population.

But the latest research from Key shows that releasing equity frees up around £494 a month. The firm said its latest research surveyed nearly 2000 of its customers and found that almost half of those had debt to repay. Making nearly £500 a month available will have a huge effect on their quality of life, according to Key’s Group Director.

EuroDebt has seen similar figures of the older generation in debt. It has thousands of clients over sixty on a Debt Management Plan'>Debt Management Plan who are either retired or facing retirement. Of those thousands of clients, nearly a third still have a mortgage and their average unsecured debt is just under £40,000 with 9 creditors.

EuroDebt echoes the positive effects equity release can have on disposable income, but says it's only an option if existing secured debts can be cleared.

• Share
• 
• 
• Store
• 
• Follow
•