Equity release helping over 60s reduce debt

Over 60s are increasingly taking note of debt advice to reduce the amount they owe, it has been reported.

According to Key Retirement Solutions, more senior homeowners are using equity release to settle oustanding debts.

The firm's Equity Release Market Monitor indicates that 36 per cent of those opting for equity release in the last quarter were doing so to pay off what they owe – a significant increase from 29 per cent in the previous quarter.

Commenting on the finding, Andrea Rozario, director general at Safe Home Income Plans, said that the group had seen an increase in borrowers whose primary aim was to pay off loans.

However, she added that these were primarily homeowners looking to end their monthly mortgage repayments.

"That, coupled with the fact that the fastest growing group of people in debt are those aged 60 and over, would seem to make sense," she noted.

The fifth annual Scottish Widows UK Pensions Report indicated last month that the average outstanding non-mortgage debt amongst retired people who owe money is £7,344, up from £6,732 in 2008 and £5,930 in 2007.

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2009-10-15 22:53:34 © Moneyextra.com