September 14, 2009
Secured Finance Can Save Pensioners £500 A Month
Pensioners who use some of their home’s equity may be able to save themselves up to £500 every month on debt repayment and managment.
Latest research, based on customers who have released equity from their home this year from Key Retirement Solutions, has revealed the direct benefit that today’s retirees can get from repaying debt.
Earlier this year, Key found that UK pensioners were sitting on an estimated £183bn of debt. Such levels of debt are naturally having a grave effect for many having to meet the monthly burden of servicing a range of responsibilites including loans, mortgages and credit cards.
The latest analysis reveals how positive an effect being free of serviceable debt can be – the equity release broker has found that average debt repayment is freeing up £494 in monthly income, the equivalent average increase in disposable income of 38%. Using your home’s equity to consolidate debt can be a sensible, profitable exercise.
Dean Mirfin, group director at Key Retirement Solutions says: “Much, understandably, has been said about the increasing levels of debt amongst UK pensioners and the huge effect this has on the quality of life in retirement. Many expect retirement to be a time to be debt free but in this latest research 46% of those releasing equity with us had some form of debt which they wanted to repay.
“For many a solution, to help increase income through debt repayment, is equity release. A £494 increase in disposable income no doubt will have a considerable effect on the quality of life for many if not all UK pensioners who are servicing different forms of debt.”
SOURCE: KRS, 07/09/09
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