Householders use equity release to cut debts
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Almost a third of all equity-release customers are using the cash they raise by selling a share in their home to pay off existing debts such as credit cards and loans, new research suggests.
The Equity Release Council has warned the cost-of-living crisis is leading to older people taking on unsecured debts.
"More worrying still is the fact that existing credit users become bigger borrowers who owe more on credit cards, overdrafts and so on as time passes, Nigel Waterson chairman of the Equity Release Council said.
Limited pay rises and the rising cost of living mean many struggle to make their incomes last until the end of each month and people are increasingly turning to credit cards to cover this period."
In addition, the group concludes that increasing numbers of people in their 50s and 60s are using equity release to boost their income and reduce the amount they spend on debt-interest payments.
"For those who are retiring or find themselves in debt beyond the age of 55, using equity release can help to plan ahead, provide a regular income, still protect some of the value of your property and offer far lower interest rates," Mr Waterson added.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments