More people are coming to retirement and realising that they simply cannot afford to fund themselves for 20 or 30 years – for them the answer may lay in unlocking their home's equity.

Retiring is becoming more expensive – the average retired household needs to find up to £429 extra a year to cover an increase in their cost of living, according to MGM Advantage.

It has found that the annual average household expenditure for a retiree is estimated is £23,106 and £14,926 where they are aged 75 and over. While a good pension may cover most of this it may not cover all of it, and it may not cover all of it after a long retirement.

Aston Goodey, sales and marketing director of MGM Advantage says: "Many retired people have had to endure a rise in their cost of living. This, coupled with the fact that people are generally living longer is placing considerable pressure on retirement income. All the more reason to seek financial advice to ensure you achieve the best possible income in retirement."

By using some of the equity in your home through equity release, you can add to your pension pot and you can cover shortfalls during retirement. You do not have to use all of your equity and it needn't cost you a lot to take on the responsibility but it will aid your retirement and make your finances work during your final years.

SOURCE: MGM Advantage, 13/01/10

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If you have found that you can no longer jump about from one credit card to the next it might be time to begin managing your debts with a mind to scrapping them later.

Traditionally, many cardholders transfer balance to a new 0% balance transfer card. However in the current market, many people are finding it increasingly difficult to access new deals, with only four out of ten applications being accepted, according to moneysupermarket.com.

So if you can't move the debt it's time to handle the debt. The first thing to do is to check your credit rating – make sure you have a good credit rating before doing anything. If you have a bad rating you will be limited in what you can access, credit-wise, and you may have to come up with another plan to clear your debts.

Realistically plan your budget for repaying your debts – If you are looking to switch a debt to a zero per cent deal, then aim to pay off this debt before the balance transfer period ends. First make sure you can afford the monthly repayments to clear the debt and then come up with a sensible plan of action over the year.

If you are unable to find a new card deal, consider a secured loan. A loan will allow you to move all your debts onto your mortgage, giving you a smaller repayment over a longer period. This is a perfect option for those looking for room to save and to move back into the black over the long term.

If you are unable to move your debt, then aim to pay off the balance as quickly as possible. Paying off £150 a month on a £3,000 balance on a card with an average rate of 18.31% would take just two years.

Peter Harrison, credit card expert at moneysupermarket.com, says: "It is extremely difficult to switch cards at the moment so you need to be savvy about tackling your existing debts. The best approach largely depends on your credit rating and how much you are able to repay every month. Careful planning is required to ensure credit card debts are cleared in the most efficient way possible."

SOURCE: Moneysupermarket.com, 12/01/10

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If you have unsecured debt it's better to pay it off when you can so as to be able to get hold of secured, cheaper debt when the time is right.

Figures released by the Bank of England have shown that in November, borrowers repaid £376m of unsecured debt and while that was £215m less than the total repaid in October, it's good to see that people are trying to pay off unsecured debt rather than amass it.

Howard Archer, chief UK and Eurozone economist at IHS Global Insight, says: "The fifth successive net repayment in consumer credit in November is clearly the consequence of many consumers` desire to reduce their debt. It is yet another example of consumers looking to improve their financial situations in the current difficult and worrying economic environment."

If you have unsecured debt problems, lenders cannot trust you to be able to pay off secured debt. In their eyes they see someone who has taken short-term solutions instead of thinking carefully and saving instead of borrowing. Too much credit card debt, store cards and personal loans points to a borrower who may not be able to deal with a bigger, long-term loan.

Talk to a financial professional about working off your unsecured debt, either through sensible budgeting or through secured debt consolidation to allow you to become a better potential borrower. The person who has worked off debt, budgeted wisely and has listened to sage advice is the person who will be accepted for future secured loans and mortgages.

SOURCE: IHS, BoE, 07/01/10

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Sometimes it might not feel like it, but there are options out there for homeowners struggling with secured loan debts.

It's particularly hard at this time of the year, with many consumers looking to reduce their New Year debts, but by talking to a financial specialist you may find that your January blues can be solved.

One option is for a secured loan. According to Nationwide, in January 2009 alone, almost 60% of all loans issued were for debt consolidation purposes. By consolidating debt, you reduce your outgoings and give yourself some much needed room to begin saving and move back into the black.

Richard Napier, Nationwide's head of credit cards and personal loans says: "For those already in debt, the New Year can signal greater money worries. Money worries are made worse if the debt is spread across many sources such as credit and store cards, overdrafts and loans."

Napier says that with additional mortgage borrowing, existing debts could be rolled into lower and more manageable monthly mortgage payments. So if you already have a mortgage, it may be worth speaking to a mortgage expert to see how they can help you.

Moving debt onto unsecured cards will only lead to more fees, more bills and more financial worries. But by rolling debts into a mortgage, your monthly payment becomes your only outgoing. That means you can save money, can breathe easier and can be safe in the knowledge that your lower rate debts are safe and secure.

SOURCE: Nationwide, 06/01/10

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If you are thinking of moving your credit card balance to a new credit card think again – consolidation may be a better option for many people facing spiraling debts.

More than 4.5 million Britons are planning to move in excess of £3.2bn pounds between credit cards in the first three months of 2010, according to Santander. While the research found that cardholders planning a balance transfer in the New Year will transfer an average sum of just £1,140, compared with £2,290 in 2009, people could still be walking blind into greater adverse debt problems.

Moving debt to another credit card just prolongs the inevitable. It might mean low rates for a while, but once the introduction periods have passed, credit card debt is double-digit rates of interest and the risk of worsening credit ratings and harsh penalties and fees.

But by consolidating the debt using a secured loan, all that can be avoided. Consolidation means lower rates of repayment and less risk to credit ratings. It also has long-term benefits – as your house becomes more valuable, your debt diminishes.

Of course consolidation is not right for everyone, and admittedly moving to another credit card is an example of pro-active financial management. But to be sure, and to assess all your options, talk to a financial professional. They will give you an impartial and fair opinion of what's best for you, in the short and the long term.

SOURCE: Santander, 02/01/10

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You have probably spent the last year doing all you can to help solve your secured loan problems – but if you want to be successful you need to make another New Year's resolution to once again work hard at saving and clearing debt.

But too many people think their problems will just go away now they have spent a year being financially sensible – Gocompare.com says that while money matters topped 60% of peoples' resolution lists last year, only 37% will resolve to sort out their finances and pay off debts in 2010. 

Lee Griffin, business development director at Gocompare.com says: "The credit crunch ensured that everyone was thinking about money this time last year. It gave people a jolt and got us thinking about how we could save money. I doubt very much that everybody has got their finances in order, so resolving to cut outgoings and shop around more are still likely to be good resolutions this year too."        

So people who have debt problems need to persevere and make some more promises to themselves for the next 12 months. New resolutions could include saving money on outgoings, getting out of debt or reducing loan and credit card costs, putting more into a savings account or even shopping around for the best financial products like insurance and mortgages.

The key to getting out of debt is perseverance. But we all know reducing debt is tough, so get some help in making your resolutions stick. Talk to a professional financial adviser about putting together a new 2010 plan of action – a good plan alongside some professional advice can go a long way in making sure your 2010 financial resolutions work.

SOURCE: Gocompare.com, 30/12/09

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Too many people have battled with debt without taking stock and seeking out some professional loan advice.

In fact, over a quarter of householders in the UK are suffering mental anguish and depression due to housing cost worries, with over two million households finding meeting housing costs a constant struggle, 400,000 of whom are specifically falling behind with rent and mortgage payments, according to Co-Operative Insurance. 

And with the festive season now upon us, households will face increased financial pressures with additional seasonal costs contributing to householders money worries. People will be tempted to pile on debt and take on short-term solutions to get by into the new year. But this will only increase problems later on – debt needs to be dealt with professionally and responsibly, with a mind to long-term improvement.

James Hillon, head of home insurance at Co-operative Insurance says there are still many families, couples and individuals who are at risk of repossession or eviction around the UK particularly at Christmas – if debt is left to languish, your home will be at risk.

Don't struggle on, week in week out with debts and risk losing your home. 2010 needn't be like 2009 – talk to a mortgage professional about your loan and mortgage problems. They might be able to solve all of them, but they can go far in helping you get on the right track and can make sure you have a much better chance of holding onto your home next year.

SOURCE: CIS, 03/12/09

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Most Brits still take the view that once they reach retirement, their home will provide for them – although this might be the case for some, it is better to err on the side of caution and ask a financial adviser about your long-term financial potential.

According to a report  by  LV=, the over-50s homeowners they surveyed believed that an average of £27,250 has been wiped off the value of their homes, when in fact over-50s homeowners have lost £80bn overall in property value due to recent housing market falls.

This is a concern when the insurer says 1.3 million people still plan to use their property value to help provide retirement income. Only 2% say have been turned off the idea of using their home to fund retirement, while a further 11% plan to take advice on unlocking the value of their home before they retire.     

The new research also highlights the impact of the long-running house price boom on pension savings behaviour among over-50s homeowners now nearing retirement – people assume their home will provide for them but as any good adviser will tell you, assumption is a dangerous thing.

One in eight people have consciously saved less into traditional pensions because of the perceived spiralling value of their home and a further 13% say they couldn't afford to buy their own home and invest in traditional pensions, because property prices were so high.

We are all getting older, living longer and saving less – this is a bad concoction and will lead to many people being unable to do what they want to do in their later life.

However, many enterprising over-50 year olds have plans to recoup some of their lost equity and make the most of their property. One in six  will make home improvements to add to the value of their house, and one in five say they will save extra money wherever they can. Nearly a third say they will simply bide their time for property prices to recover.

Vanessa Owen, head of equity release ay LV= says: "In a matter of months millions of pre-retirees have seen both their property and pension fund values battered. House prices still have some way to go before full recovery but with increases for six consecutive months now, and Brits are feeling more confident that their home can still play a big part in helping to finance their retirement."

To find out how your home can help your retirement, and to find out what else you can do to fund your later life talk to a financial adviser. They will tell you the truth, lay out all your realistic options and do everything they can to make your retirement successful

SOURCE: LV=, 01/12/09

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Three in ten British employees are concerned about being made redundant in the next 12 months, a survey for the homelessness charity St Mungo's revealed today – but how many of them have covered their secured loans with the right insurance products?

Not enough it seems. Since last year, there also hasn't been a decrease in the proportion of British adults who are concerned about being forced to leave their home during the next 12 months due to falling behind on their mortgage debts, according to St. Mungo's.

Getting into debt, especially mortgage or rent arrears, is a recognised 'trigger' that can lead to homelessness. Around two thirds of St Mungo's residents in the charity's own poll said losing their job had contributed either directly or indirectly to their becoming homeless.

People who do not cover their debts with redundancy, critical illness, income protection or life insurance face their home being taken from them if they lose their job – and as we all know, no one's job is entirely safe in a recession.

Charles Fraser, chief executive of St. Mungo's says: "Losing your job, and falling behind on home payments, remains the spectre at the feast for many this Christmas and into 2010."

There is a simple way of avoiding losing your home, whatever happens to your job, and that's by taking out some cheap, simple insurance products. Talk to your mortgage adviser about keeping your debts safe and ultimately keeping a roof over your head if you lose your job.

SOURCE: St. Mungo's, 23/11/09

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The Financial Services Authority has finalised plans to bring secured loan lending under its wing – much like regular residential mortgages, soon secured loans will fall under the glare of the Government's financial watchdog.

The Association of Finance Brokers says stretching regulation so as to cover second charge mortgages as well as first charge loans is a good thing for borrowers.

Robert Sinclair, director of AFB, says: "We fully support this announcement as we have long been calling for an alternative regulatory regime under FSA. In our view this will benefit brokers, lenders and consumers. We welcome the fact the Government and the regulators have listened to brokers in seeking to deliver a better environment for business and consumers."

Brokers know secured loans – they understand how they work, who needs them and what you need to do to make the most of them. So when brokers say regulation of secured loans by the FSA is a good thing, you know it will benefit their clients – which means you.

But what will it do? Well it will make sure, first and foremost, that you are protected. Regulation by the FSA will mean that secured loan lenders and brokers must, by law, treat all their customers fairly and must also make sure that any loans are the right choice. But it will also make sure all the loans are created with the borrower in mind, it will make sure that brokers and lenders are not making too much money from you and it will make sure that you have recourse if something goes wrong.

Ask your broker about the new regulatory regime. Most good brokers, like The Mortgage Broker Limited, are already regulated by the FSA. They know how it works, they know what their job is and they know that their main remit is to make sure that you are getting hold of the best financial products possible.

SOURCE: AFB, FSA, 25/11/09

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