It is thought that one in fivecustomers are suffering from the burden of having over £9,000 of debt on credit cards. This high level of debt is considerably eating into retirees’ income with many at risk of not being able to pay off the debt.
The news follows Government proposals to introduce more stringent rules on credit card lending so that individuals can manage their debt better.
A Changing Image of Equity Release
An equity release scheme has the potential to unlock some of the value in your home and give you a tax free lump sum.
In 2008, financial reasons were cited as a key factor for a customer taking out an equity release scheme. However, according to Hodge Lifetime, 48% of customers asked in the final quarter of 2009 said they had made the most of an equity release scheme for peace of mind.
This shift in perceptions about what homeowners can use equity release for is helping shape a new image for the market. Alas, using an equity release scheme to remove the burden of debt and continuous re-payments remains popular to provide a worry-free retirement.
Using Equity Release Rather Than Credit Cards
The increases in the cost of living doubled with reduced pensions is leaving many homeowners to pile debt onto credit cards, which an alarming number are doing.
Using an equity release scheme could give many of these homeowner’s greater financial freedom and budget without the worry of re-payments.
By consolidating your existing unsecured debts, you may extend the term and overall cost of these debts.