- Thursday, 10 September 2009Elderly citizens could consider seeking independent debt advice before committing to an equity release scheme to pay off their debts.
According to Prudential's Equity Release Index, there is £654 billion of equity tied in the homes of the UK's elderly.
Those considering releasing the equity in there home come from one of three categories, suggests Dean Mirfin, director of Key Retirement Solutions.
He said: "There are three types of people in retirement or approaching it who want to boost their quality of life by using equity release.
"Firstly, there are those who very much need to do something in order to pay bills or make debt repayments."
The other two categories of people are the "lifestyle" and "inspirational" groups.
Earlier this year, Key Retirement Solutions estimated that the elderly demographic in Britain carried a collective debt of £183 billion and that pensioners could gain an extra £500 in income as a result of debt repayment.
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