Homeowners using equity release to deal with debt - CCCS

Tuesday, 26 July 2011 01:57

Older homeowners are increasingly releasing equity in their property to deal with their debts, the Consumer Credit Counselling Service (CCCS) has revealed.

New figures from the organisation showed clients using its equity release advice service unlocked an average of £29,983 from their dwelling to help pay down debts and meet other costs last year.

Meanwhile, homeowners over the age of 55 contacting the CCCS for help owed an average of £29,772 on credit cards, personal loans and other unsecured debts.

CCCS equity release manager Tom Moloney said: "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."

With an equity release, older homeowners may be able to free up part of the value of their property as income or as a lump sum.

For some people this can be a useful way of freeing up extra money but there may be drawbacks.

People struggling with debt can get unbiased advice from the CCCS, Citizens Advice, National Debtline or Payplan.

Use the Myfinances.co.uk comparison tables to find the best deal on a personal loan
 

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