Could equity release help those facing pay freezes?

More and more people may turn to equity release schemes as one expert has warned pay freezes are stretching household finances.

Spokesman for candidmoney.com Justin Modray described how Britons are increasingly struggling to afford day-to-day necessities due to the current economic climate.

"Pay freezes are an unwelcome by-product of our stalling economy and a government that needs to cut back spending, so I doubt matters will improve for at least another year or two," he stated.

It was noted price rises in food and fuel, which are big household expenditures, mean individuals are finding their finances are being stretched to the limit.

Mr Modray warned that rising unemployment will only serve to further "squeeze" pay, as job competition increases.

His comments follow a recent report from the Resolution Foundation that claimed new tax credits are putting the household finances of middle-income families under increasing pressure.

Ashall Glover Financial Services advising on equity release schemes

Posted by Louise Tilston