Statistics released this week have shown that Britain's accumulated personal debt among adults has reached nearly £1.5billion. These debts are most commonly spread across a number of credit cards, mortgages and store cards and are further proof that a large number of people in this country face spending most of their lives under a cloud of increasing financial concern.
Carrying debt into retirement further compounds issues and can have a serious effect on the standard of living. Disposable income becomes reduced and where income isn't that much to start with, and living expenses continue to climb, it really does start to cause problems.
There is a way, however, to increase disposable income in retirement and it has proved successful for many homeowners over the age of 55.
A home reversion plan or lifetime mortgage, both types of equity release plan, allows homeowners to extract some of the value that's built up in their homes over the years.
Increasing Disposable Income with Equity Release
The cash released can be used to pay off a mortgage or other loans, leaving more money to spend each month.
Additionally, there could even be enough cash to pay for home improvements, such as replacement windows and doors, a new kitchen or bathroom or a conservatory for example.The pressure of debts in retirement could be relieved with a suitable equity release plan.
Seek independent advice from an equity release specialist to discover whether you qualify.Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.