A third of people unlocking cash from their home do it to pay off debt

MORE than a third of people who have released cash from their home did so to pay off debt.

Figures from equity release firm Key Retirement Solutions show homeowners unlocked £613.3million in the first nine months of this year, up from £586.7million in 2009.

While 63% used the cash for home and garden improvements, clearing debt was the next top priority.

Half of over-65s owe money on mortgages, loans, credit cards and overdrafts and it’s costing them an average £297 a month to make repayments.

The average pensioner debt is almost £36,000, but it’s the over 70s who owe the most: an average of £40,000.

The biggest slice of debt is mortgages, with 27% of pensioners owing £45,000, rising to £52,000 for the over 70s. Average credit card debt is £8,881, rising for the over 70s to £9,048.

Try to clear debts before you face a drop in income and have to cope on a pension. If you’re struggling with debts, don’t ignore them.

Unlocking the cash in your home can be a solution, but not for everyone. Get specialist independent advice to make the right choice.

Source: mirror.co.uk