An expert has warned that many older people are being incorrectly advised to release equity from their homes in order to repay debt.
Duncan Young, managing director of Retirement Plus, made his comments to IFA Online, saying for debtors in their 50s, such a move may not be in their best interests.
Equity release could be appropriate for an elderly person, however, those in their 50s could easily live a further 30 years and so equity release is not necessarily the best way to deal with their financial problems, he warned.
The government advises debtors to face up to their financial problems as soon as possible. It advises borrowers try to budget to cut their costs.
One option available to borrowers is an independent voluntary arrangement which allows them to settle their debts over a set period of time, usually five years, and write off any remaining debt. It must be set up by an insolvency practitioner.