Pensioners repay their debts with `unlocked` equity

16 October 2009

According to research by equity release group Key Retirement Solutions, around one in three retired people who `unlocked` equity from their home during the third quarter of 2009 used the money to repay their unsecured debts, The Press Association reports.

The research shows that around 36% of the retired people who released equity during the third quarter of the year did so to repay their non-mortgage-related debts - up from 29% in the previous quarter.

In addition, the number of pensioners using the equity they released to clear their mortgage debt increased by 8% to 23%.

A debt expert for Think Money commented: "At a time like now, it is particularly important that people take steps to take control of their debts - and releasing equity is just one of the ways they may be able to do this.

"We would advise anyone who is struggling with their debts to consider all the alternatives that may be available to them. A professional debt adviser will be able to help them explore their options and identify the best way of clearing their debts."

Tags: debt, pension, senior citizen, equity, equity release, equity release group, Key Retirement Solutions

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