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Debt problems lead to will changes

10/02/2011

The debt problems affecting people in Britain today have been so difficult to cope with that millions of consumers are having to change their wills, just to get by.

New research shows that this trend has risen substantially during the past two years, with many consumers selling off their family heirlooms to secure more income for their household.

The survey released by Engage Mutual this week concludes that while half of the adult population has made a will, the past two years have seen 15 per cent of consumers dispose of assets that were originally documented.

Engage Mutual says these measures took place largely because of the debt problems brought on by the economic downturn.

The survey finds that out of those people who disposed of items in a will, more than two-thirds have done so because of debt problems or due to them losing their job.

Unfortunately for 33 per cent of people responding to the study, by the time they die, they feel they may well have spent everything they had in tended to pass on.

Debt Expert Kevin Still, says: "Equity release and asset disposal are increasingly common methods of releasing cash to pay off debts, which may become increasingly difficult to service in later life. Unsecured creditors can be quite aggressive in enforcing charging orders on homeowners to effectively convert personal loan and credit card borrowing into secured debt, which will be paid off if the property is sold." ADNFCR-2613-ID-19952362-ADNFCR