Older people 'increasingly using equity release to combat debts'
Older people, who could soon be choosing a care home, are increasingly turning to equity release in order to clear their debts, a leading charity has said.
According to the Consumer Credit Counselling Service (CCCS), equity release services unlocked an average £29,983 capital from the homes of older people in order to help them pay down debts.
The charity reports that an increasing number of its clients are releasing equity from their property in order to clear what they owe.
Tom Moloney, equity release manager at the CCCS, commented: "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."
This comes after Robin Ellison, partner at law firm Pinsent Masons, said that older people will struggle with the rising rates of inflation in the UK as they will not have considered how much money they would require for a retirement taking place in a climate of low interest rates and increased life expectancy.
Posted by Natalie Edwards