No one wants to bring debt with them into their old age so if you think you'll be paying back your credit cards forever, talk to a mortgage adviser about using some of your home's equity to clear the debt for good.

There are still many people entering into retirement with hefty credit card debt – in fact, one in five over-65’s owe money on their credit cards with average debt of £8,967, says Key Retirement Solutions.

Its analysis shows that pensioners making the monthly minimum repayment on a balance of £8,967 at an average 18.8% rate would pay £141 out of average gross pensioner incomes of £16,000. That equates to 10% of monthly income before tax – but someone only paying the minimum would take 30 years and one month to clear the debt without spending any more on the card.

But using some of your home's equity could cancel out that debt and save you a fortune in your retirement. And there more than enough equity to do this – KRS says the over-65s have property wealth of around £765.2bn after paying off mortgages and gaining from increases in house prices.

Dean Mirfin, business development director at KRS, says: “Debt is a way of life for a substantial number of people and the over-65s are not immune. Many are perfectly comfortable with owing money on their credit cards and it can be a sensible way of planning for major purchases.

“Many of them do though have substantial wealth tied up in their homes which represents a potential source of income particularly when other sources of retirement income are under pressure from low interest rates and annuity rates.”

SOURCE: KRS, 16/03/10

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If you do not take control of your debts and take a proactive approach to your problems then you may be a slave to your debts for ten years.

According to insolvency body R3, a quarter of debt management plans will last ten years or more, even though the plans are meant to be a short-term repayment plan between an individual and their creditors.

Peter Sargent president of R3 says: "Debt plans can play an important role in offering a manageable solution to individuals who are able to pay back their debts. However, the sheer length of some plans indicates that the amount of debt these individuals have is too large – these inappropriately lengthy plans people become slaves to their debts."

Having to bow down to debt for years is not the answer – it might mean a decade of no credit and no hope. But by consolidating your debts into one manageable secured loan you could avoid the years of pain. One low payment means room to pay off debt rather than just manage it and it means a better financial life.

Talk to a mortgage adviser about avoiding debt slavery and instead be free of your debt burdens with a sensible, manageable secured loan.

SOURCE: R3, 05/03/10

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Mortgage lenders of the UK are finally beginning to offer higher loan to value mortgages, so those whose equity was decimated through secured borrowing now have a hope of a cheaper mortgage in the future.

Before the credit crunch, secured borrowing was all the rage. Because borrowing was so cheap and credit so bountiful, everyone borrowed to keep the credit party going. But since then, those who geared themselves up with debt have not be able to get hold of a mortgage because they did not have enough equity left in their home to be considered a prudent bet by lenders.

But things are slowly improving in 2010. According to Moneysupermarket, the amount of 85% LTV products increase by 22% since the end of 2009 and 90% LTV products increase by 11% over the same period. Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, says: "Lenders seem to have started 2010 with their doors open and are clearly more open to mortgage lending than they have been for some time."

This news, coupled with continued house prices increases over the last nine months, means that more borrowers who have been left out in the cold over the last two years now have a chance to get hold of a home loan.

If you have been unable to get hold of a mortgage due to a lack of equity, it might be time to go and talk to a professional mortgage adviser. They will be able to assess your situation now, in 2010, and see whether you would be eligible for a new mortgage.

SOURCE: Moneysupermarket.com, 26/01/10

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Experts have warned that store cards and credit cards are not offering borrowers a good deal and are designed to encourage overspending rather than sensible money management.

Website Moneyfacts.co.uk is calling for more transparency and control of credit and store cards and has even gone to the Government to call for a better deal for consumers on credit and store cards.

Samantha Owens, principal consultant for banking and economic insight at Moneyfacts, says: "Credit cards form an integral part of the financial services industry and allow customers to transact with convenience, reassurance of safety and added consumer protection. But credit cards also come with the risk of a greater temptation to overspend. It is one of the most expensive forms of credit and has little or no structured repayment mechanism."

Moneyfacts says there is a real problem with customers' understanding and while more can be done to educate credit card users. People are too quick to take on unsecured credit without being aware of the consequences.

The website is right – easy unsecured debt encourages people to spend without teaching them the consequences. While a carefully managed credit card can be to your advantage and can be a useful way of making the most of your money, it is easily misused and will get you into debt trouble quickly.

If you are worried about your unsecured lending there are secured options out there to help you. Talk to a financial adviser about what you can do to steer clear to unsecured credit and improve your finances securely and sensibly.

SOURCE: Moneyfacts, 21/01/10

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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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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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Only 25% of people have ever checked to see if their details on their credit file are correct – all secured borrowers must go online and make sure that lenders can see the whole truth and nothing but the truth.

A survey conducted by Confused.com has found that 12% of people had gone online and found that their credit score had improved – but many more might be better off and not have a clue.

Joanne Garcia, head of credit cards at Confused.com says that with providers tightening lending criteria and rejecting many applications people are concerned that they might get a black mark on their credit score – so much so that 40% of people are now scared of credit scores. But if you never check your credit score you will never know.

Garcia says: “It is the 22 to 30 year olds who are the most concerned by the potential of a black mark on their credit score, as the financially savvy young look to the future and see problems about not only getting a credit card or loan, but also to finding a decent mortgage."

Get savvy yourself and get checking. Your credit score is what lenders see when they consider you for a borrower. If you have a black mark, or even worse if you have a mistake on the score, you could be turned down for credit.

Lenders are still saying no a lot more than they are saying yes, so you need to stand out from the rest. That means sorting out your finances and it means being on top of your credit score. And remember – if you can keep a clean sheet now, even if you cannot get credit you are going to be at the front of the queue for loans when things improve.

SOURCE: Confused.com, 11/11/09

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The Government has announced new proposals to ensure that people who are saddled with unsecured debts like credit cards and store cards are given a fairer deal.

Right now, if you have unsecured debt you are at the mercy of the lender. They can change rates and they can even increase credit limits without your consent, both of which could be detrimental to borrowers already struggling with debt and with a bad credit rating.

But that is set to change. Consumer Minister Kevin Brennan says: "Card companies have to get their act together and do more for consumers. The Government is putting forward new measures which we believe will give consumers a better deal."

Brennan says the Government may enact new rules that mean unsecured lenders cannot increase credit limits and cannot increase interest rates without prior consent from the borrower.

Also, the Government wants to make sure that lenders are not allowed to change the rules that set out the order in which debts built up on a credit card are paid off – most credit card companies make customers pay the cheapest debt off first, but in the future this might be reversed, meaning those with unsecured debts will be able to tackle the biggest debts first. There are also plans to make sure people to pay off their debt faster by banning interest-only repayments – servicing a debt rather than trying to pay it off can means years of unsecured financial problems and thousands in unnecessary interest.

Joanne Garcia, head of credit cards at Confused.com says: "Like it or not, a lot of people depend on credit cards, so anything that can be done to protect them from the credit card companies and themselves, is good news.

"If the credit limit is increased or credit card cheques are issued, some people cannot resist using what is on offer. But this can lead to terrible spiralling problems, especially when the interest rates rise, so this move by the government could potentially give more power back to consumers and allow them to regain control over their finances."

The sooner people can be clear of unsecured debt, the better. Debt needn't be a bad thing, but credit card and store card debt is never positive. If these changes do come through it will mean people will be able to pay off debt faster, consolidate easier and will become better credit candidates sooner.

SOURCE: Dep. of Business, Innovation and Skills, Confused.com, 27/10/09

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No one wants to have to face debt in their retirement after a long working life, but unfortunately that's the case for many pensioners in the UK – something has to be done now to stop the elderly becoming too indebted.

EuroDebt says within its current client base of those over 60, almost one in three still have a mortgage and the average unsecured debt for these homeowners is just under £40,000.

Kevin Still, director of EuroDebt says: "The big question is what happens to these people if they are forced to retire? The analysis of our client base indicates a worrying trend, as more and more over 60s appear to be getting into serious debt, struggling to cope with the pressures of the recession. For some their savings have been hard hit as a result of the interest rate cuts and for others the prospects of living off the equity of their properties has diminished.

"The prospect of retirement should be a happy and relaxing time, after a lifetime of work. But our figures reflect that not only are some older workers going to stay on in their jobs for much longer, but for those forced to retire there are real concerns of managing their financial commitments."

EuroDebt says the figures for debt in the over 60s has gone up quite considerably since the recession really took hold – this age group is really struggling to keep on top of finances as their income has dropped and cost of living has risen.

If you are worried about your debts as you look to retirement, the sooner you can begin sorting them out, the better chance you have of being debt free by the time you leave work. Talk to a mortgage adviser about your secured loan, remortgage and equity release options. Your home is your most important long-term asset, but it's also your best chance of getting out of debt.

SOURCE: Eurodebt, 07/10/09

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Millions of people could be placing themselves at risk after a new study found that as many as 16.5 million Brits believe that the State welfare system provides an adequate safety net for a modern standard of living.

According to research commissioned by Scottish Provident, in 2003, just one in five people questioned said they believe that the state provides an adequate safety net for modern standards of living. Today this figure has risen to more than a third, despite job seekers allowance increasing by just £5.76 on average during this time.

The report does reveal a continuing high level of support for a welfare system, with 72% of Brits believing that the state welfare system in Britain should provide an adequate safety net for modern standards of living.

Susan Barclay, head of marketing at Scottish Provident says: "More people have come to believe that the state would provide an adequate safety net should the worst happen but the reality is that the average increase in job seekers allowance of just under £6 doesn't come close to the cost of living in today's world."

If you have made no provisions for unemployment, it might be time to think again. There are various ways in which you can use your money to protect you should the worst happen – namely a savings plan or redundancy protection insurance. You may think welfare can keep you safe if you were to lose your stream of income but if you do the maths, you will probably be shocked to find that you would end up defaulting on many of your responsibilities and ultimately finding yourself in more trouble.

Talk to a financial adviser as soon as possible about protecting yourself against the worst. Before the worst happens, take action as soon as you can.

SOURCE: Scottish Provident, 25/09/09

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