Equity release could be used to clear debt
Equity release could be used to clear debt
- Thursday, 16 September 2010Over 55s could use equity release as a way of paying off their mortgages or clearing
credit card debt.
According to Dominic Fraser Smith, retirement manager at Aviva, the world's fifth-largest insurance provider, equity release can be a good option for some.
He stated that equity release allows consumers to draw on the wealth of their property without having to move home.
It can be used by people who have no savings or investments to fund a lifestyle that the consumer has got accustomed to or to help them pay off their mortgage or any
credit card debt they may have.
Mr Smith said: "A few years ago it was for luxuries like cruises and around the world trips, and whilst there are still customers who do that there has been a shift in terms of people paying down existing debt.
"If they are not paying back mortgages or credit card debts on a monthly basis it leaves them with an increase in disposable income."
Age UK recently found that a third of equity release customers were using the money to clear debt.

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