Increase in over 60s seeking credit

Over 60s are increasingly looking for ways to get credit in order to pay down debts, new research has shown.

Figures from The Key Retirement Solutions Equity Release Market Monitor reveal that 36 per cent of those opting for equity release in the last quarter were doing so to pay debts – up from 29 per cent in the previous quarter.

Andrea Rozario, director-general at Safe Home Income Plans (Ship), said that the group had seen an increase in borrowers whose primary aim was to pay off loans.

"That, coupled with the fact that the fastest growing group of people in debt are those aged 60 and over, would seem to make sense," she added.

Research from the fifth annual Scottish Widows UK Pensions Report, published in August, revealed that the debt burden for retirees is getting worse, while overall UK debt is going down.