Credit Cards Terms Under Review as Equity Release Eases Debt
Managing credit card debt is currently under serious consideration by the government as the number of equity release plans taken out to pay back arrears increase.
The government aims to stop credit card companies raising interest rates on already accumulated debt and flippantly increasing people’s spending capacity – often surpassing their earning potential.
They are also advocating higher minimum payments on large debts and regular payments to ensure that credit card arrears are managed better.
Equity release schemes for homeowners are currently proving to be a popular means with which to tackle escalating credit card debts.
Re-paying Credit Card Debt Constitutes a Third of Equity Release Plans
As many homeowners approach retirement, balancing the books is vitally important and an equity release plan has the potential to unlock money in your house to supplement income.
Research, by Key Retirement Solutions, shows that during the third quarter of 2009 the number of equity release plans increased by 19% in comparison with the previous two quarters. This suggested a growing confidence in the market but with a third of all equity release plans unlocked used to clear debt it suggests people’s attitudes to managing finances is shifting.
A Think Money expert is quoted as saying: “At a time like now, it is particularly important that people take steps to take control of their debts – and releasing equity is just one of the ways they may be able to do this.
“We would advise anyone who is struggling with their debts to consider all the alternatives that may be available to them.”
Easing the Burden of Debt Using Equity Release
Phil Jones of Which? is backing the government proposals to better control credit card debt telling the BBC: “We think it’s simply wrong to entice people into spending more than they can afford and then to squeeze as much money out of them as possible.”
For those managing credit card debts a lifetime mortgage – the most popular equity release plan on the market – offers homeowners the chance to release a lump sum or regular payments to supplement their income.
By consolidating your existing unsecured debts, you may extend the term and overall cost of these debts.
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Thank you for the sensible critique. Me & my neighbour were preparing to do some research about that. We got a good book on that matter from our local library and most books where not as influensive as your information. I am very glad to see such information!
[Reply]
seo
6 May 10 at 11:03 pm