More 2 life has claimed that equity release must be considered as an option following recent statistics that the proportion of over-55s with credit cards debts is rising.
Research by the lifetime lender showed that the proportion of over-55s who have been in debt in the last five years and borrowed using credit cards has increased from 37% in 2018 to 54% in 2019.
Dave Harris, chief executive at more2life, said: “As older generations enter retirement with lower pension pots but arguably more financial responsibilities than their predecessors, it is perhaps unsurprising to see that many are turning towards borrowing to help fund their later lives.
“Whilst credit cards have become a normal part of many people’s financial management and some will be comfortable servicing this debt, this is not true for everyone.
“If you are unable to pay your bills and borrowing on credit to keep afloat then it is vital that you consider all your financial options as it is only likely to get worse.
“Currently, around one in five of our customers use equity release to repay debt, so we know that these products and other later life lending options can help people facing these types of issues.
“With homeowners releasing £1.85bn of housing wealth in the first half of 2019, it’s clear that more and more homeowners are realising the benefits of unlocking the wealth tied up in their homes to help fund their retirement.
“Ultimately, with an abundance of later life lending options available, it is vital that not only do customers realise that they have options but that speaking to a specialist financial adviser can help them in the long-term.”