Tweet
News
Old debtors seek equity release - 22/01/2010
The number of people over 60 forced to seek debt advice has doubled in just four years, according to figures from the Consumer Credit Counselling Service (CCCS).
CCCS said it has seen a steady increase in the proportion of clients aged 60 and over facing debt problems, from five per cent in 2004 to 10 per cent in 2008.
People over 60 tend to have higher debt levels and regularly undergo income fluctuations due to changes in circumstance, illness or retirement.
Many are asset rich but cash poor and the only way they can realistically pay off their debts is by releasing equity locked in their property, the charity said.
Malcolm Hurlston, CCCS chairman, said: "The generation which cut its teeth on the credit card has reached retirement age with higher debts than previous generations. Thanks to the increase in home ownership, many of them have access to capital which can free them of unsecured debt and lighten their last years."
Until now, CCCS has referred clients who might benefit from equity release to a panel of advisers, but from this year on it will advise clients directly.
It is launching a new subsidiary, CCCS Equity Release, which offers advice without fees to clients and has obtained authorisation from the Financial Services Authority.
The group said that there is a need to transform the equity release market by creating a new model product and it will launch a study group to come forward with recommendations.
Hurlston said: "The judicious use of equity release can transform the future for many older people and our aim is first, to make it available with the best possible guidance and secondly, to develop better equity release products to meet the needs we discern.
"I hope to announce the formation of an expert study group within the next few weeks."
Old debtors seek equity release - 22/01/2010
The number of people over 60 forced to seek debt advice has doubled in just four years, according to figures from the Consumer Credit Counselling Service (CCCS).
CCCS said it has seen a steady increase in the proportion of clients aged 60 and over facing debt problems, from five per cent in 2004 to 10 per cent in 2008.
People over 60 tend to have higher debt levels and regularly undergo income fluctuations due to changes in circumstance, illness or retirement.
Many are asset rich but cash poor and the only way they can realistically pay off their debts is by releasing equity locked in their property, the charity said.
Malcolm Hurlston, CCCS chairman, said: "The generation which cut its teeth on the credit card has reached retirement age with higher debts than previous generations. Thanks to the increase in home ownership, many of them have access to capital which can free them of unsecured debt and lighten their last years."
Until now, CCCS has referred clients who might benefit from equity release to a panel of advisers, but from this year on it will advise clients directly.
It is launching a new subsidiary, CCCS Equity Release, which offers advice without fees to clients and has obtained authorisation from the Financial Services Authority.
The group said that there is a need to transform the equity release market by creating a new model product and it will launch a study group to come forward with recommendations.
Hurlston said: "The judicious use of equity release can transform the future for many older people and our aim is first, to make it available with the best possible guidance and secondly, to develop better equity release products to meet the needs we discern.
"I hope to announce the formation of an expert study group within the next few weeks."
Comment