Equity Release Council

Making equity release safe for you



Finding extra income to cope with living costs


Almost two thirds (64%) of over-55s are looking to save more throughout 2014 but despite this almost three in four (74%) homeowners view their savings as the first port of call should they require any extra funds. One in five (19%) have raided their savings to pay everyday household bills and expenses last year.


Beyond savings, a half (50%) of over-55s would consider a bank loan, 45% would use an overdraft and 43% would use credit cards to supplement their income and cover costs.


This has meant unsecured borrowing has increased throughout the past year. Almost a quarter of people with existing credit card debt only took this out within the last year, or owe more now than they did a year ago.
Over one in three (37%) people used a credit card to pay everyday bills and expenses in 2013, including 6% who fail to clear their balance each month. One in three (33%) over-55s are worried about clearing debts this year but most either have no plan on how to resolve it or avoid the issue altogether.


Table 1: over-55 homeowners’ unsecured borrowing in January 2014

 

Over-55s with outstanding borrowing

Typical amount owed

% of new borrowers last year

% owing more now than a year ago

Average rates²

Credit cards

26%

£2,556

5%

18%

18.13%

Personal loans

9%

£6,490

14%

6%

10.90%

Overdrafts

8%

£1,663

4%

18%

19.54%



Find a member
New member enquiries