Equity release schemes could become more popular as expert warns that debt is a 'growing problem'

 

Debt is set to become a bigger problem over coming years as a result of interest rate and VAT rises, it has been suggested.

This could encourage a number of UK property owners aged over 55 years to use an equity release calculator to see how the value of their home could ease their debt worries and boost their finances.

Annie Shaw, editor of CashQuestions.com, has warned that the with recent UK VAT rise, the potential for an interest rate rise and the growing cost of fuel and transport is likely to see those in debt "take a hit" in 2011.

"While we have still got the ongoing problem of people losing their jobs, being on short-time working and having an unclear financial future, the good rates are coming to an end now and we are likely to see a rise in interest rates so this would really impact on people managing to get by so far," she commented.

Expats who still own a property in the UK, aged over 55 years and who are concerned about their debt levels, can find out how the value of their property could offer them a tax-free cash lump sum by taking advice from a professional scheme provider.