Average pensioner releasing equity has debt of £35,991

According to figures from equity release adviser Key Retirement Solutions (KRS), the average pensioner taking out an equity release plan on the value of their home is carrying debts of £35,991.

This debt consists of mortgages, loans, credit cards and overdrafts. The average monthly debt repayment stands at £297, and with the average retired household income currently at £12,412, this equates to almost 30% of household income going on debt repayments.

The research, which was based on 3,501 customers who applied to release equity from their homes throughout 2009, found that the over-70s carry a larger level of debt than the over-65s, with an average debt of £40,958 compared with £29,314.

KRS Group Director, Dean Mirfin, said: "Servicing debt cannot continue to be a way of life once you no longer have an income to enable you to comfortably make repayments and clearly many pensioners will struggle to juggle loans, credit cards, overdrafts and mortgages."

A debt management expert for Gregory Pennington commented: "We would advise anyone who is struggling to make their debt repayments - whether they`re retired or not - to contact a professional debt adviser without delay."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.