By Ailsa Hesketh, Founder & Managing Partner, Tivoli Legal, Cheltenham.
Last updated: 08/09/2026
Table of Contents
Tivoli Legal’s caring & expert approach for people facing debt in later life
Equity release can be an option for homeowners over 55 who need to pay off debt and ease financial pressure.
Credit cards, rent, and utility bills are piling up, and it’s not just the younger generation feeling the strain.
What’s the answer?
Unfortunately, there’s no one-size-fits-all solution.
However, if you’re over 55, you could consider releasing equity to pay off debt.
It won’t be ideal for everyone, and we understand the fears and concerns around the topic. But with a regulated financial adviser and guidance from experienced equity release specialists in Cheltenham, you’re assured of exceptional client service and a caring, empathetic approach.
As local experts who put client wellbeing first, we’ve encountered a wide range of situations. Our team aren’t here to judge; we just want to help you make confident, informed choices.
That’s why we’ve written this guide to help you understand your options and make the best decision for your circumstances.
Key Takeaways:
You should consider alternatives such as downsizing, remortgaging, personal loans, or free debt‑advice services, as equity release isn’t always the best solution.
Equity release can help homeowners over 55 pay off debt and ease financial pressure, but it isn’t right for everyone. It requires regulated financial advice and the expertise of an equity release solicitor to protect your interests.
Later-life lending (equity release) allows you to free up money from your home and use it to clear credit card debt, consolidate debts, or pay off a remaining mortgage.
Tivoli Legal emphasises a compassionate, client‑centred approach, offering clear communication, emotional support, and guidance throughout the six‑stage equity release process.
Equity release has pros and cons, including stress reduction and no monthly repayments, but also reduced inheritance and compound interest over time.
What is Equity Release for debt consolidation?
Equity release or later-life lending is a financial product for the over-55s. It allows homeowners to free up the equity they have in their property.
The two main types are a lifetime mortgage and home reversion. Both have unique features, benefits, and disadvantages, so you’ll need advice on which is best for you.
Homeowners can choose from a lump sum or regular payments (the drawdown method).
You decide how to use the money, and it’s perfectly acceptable to use equity release to pay off debt.
Why homeowners consider equity release for paying off debt
If you’re reading this, you might be one of the many people who feel trapped by mounting financial debt, wondering how you’ll ever find a way forward. You’re far from alone in this struggle, and there’s no shame in seeking solutions that could provide some well-needed breathing room.
Many of our clients describe the overwhelming weight of sleepless nights, relentless worry, and a growing sense of dread that intensifies with each passing month.
This kind of stress can feel all-consuming, leaving you feeling emotionally and physically drained, but remember that help is available, and you do have options to regain control of your finances and take charge of your situation.
How equity release can provide relief
For homeowners, using equity release to clear debt can offer a pathway to financial peace of mind.
You can use equity release to:
- Clear Credit Card Debt: Using equity release to pay off high-interest credit cards eliminates monthly payments and allows you to break free from the cycle of minimum payments.
- Consolidate Multiple Debts: Instead of juggling multiple payment dates, interest rates, and creditors, equity release simplifies your financial life.
- Achieve Mortgage Freedom: For those still carrying mortgage debt into their later years, later-life lending can provide the funds to pay off the remaining balance.
Tivoli Legal’s compassionate approach
We recognise that for homeowners with debt, equity release is rarely an easy decision.
It requires careful thought, honest conversations about your future, and coming to terms with your financial reality.
It’s also essential to speak to a qualified financial adviser before making any decisions, so you can be sure all your options and the possible long-term effects are fully explored.
Once you’re equipped with the facts and want to proceed, we can help.
Our approach begins with listening – and we mean really listening – to your unique situation.
We appreciate that every client’s story is different, and what brought you to consider equity release is deeply personal.
Whether you’re:
- Facing unexpected medical bills.
- Supporting adult children through tough times.
- Finding that your pension isn’t stretching as far as you’d hoped.
We’re here to help, offering understanding and respect by:
- Giving you the time you need: It’s your home, your future, and your choice. We work at your pace, ensuring you have clarity at all stages.
- Providing clear, honest communication: We explain everything in plain English, without jargon.
- Offering ongoing support: Our relationship with you doesn’t end once you’ve signed the papers. We’re here to support you through the entire process and beyond.
Moving forward with confidence
Your home is a testament to years of dedication, hard work, and financial responsibility. If you’re considering equity release to clear debt, it can be a practical solution to ease financial stress and improve your quality of life. However, it’s crucial to take this step wisely. Always seek professional financial advice to ensure that equity release is the right choice for your unique circumstances.
Ready to move forward with equity release? Our team is here to listen to your story without any pressure or obligation.
How does equity release work? Step-by-step with Tivoli Legal
Navigating the equity release process can feel overwhelming, especially when using it to pay off debt. But knowing what to expect can ease your worries and help you move forward with confidence. Below, we’ve outlined a clear, six-stage process to guide you every step of the way. Here’s how it works:
Stage 1: Finding a qualified financial adviser
The first step is to connect with a qualified financial adviser who will determine if equity release is the right option for your unique situation. If it is, they’ll help you choose the most suitable product.
Stage 2: Instructing Tivoli Legal
Once you’re ready to move forward, the next step is to instruct one of our Conveyancing Quality Scheme (CQS) accredited solicitors at Tivoli Legal. We’re pleased to offer a free initial consultation to understand your needs and answer any questions you may have.
From there, we will carefully review all relevant documents to ensure everything is in order. If any complexities arise that could impact the timeline, we’ll let you know right at the start. Our goal is to keep the process transparent and free of surprises so that you can feel confident every step of the way.
Stage 3: Receiving your offer
Once your lender provides their offer, we’ll receive the legal documentation shortly after you do. If you have any questions about the terms, such as interest rates or conditions, we encourage you to discuss them with your adviser as soon as possible.
Stage 4: The legal process
This stage includes a mandatory face-to-face meeting with one of our solicitors. Whether you visit our Cheltenham office or meet in the comfort of your home, we’ll ensure you clearly understand every detail before moving forward.
Behind the scenes, we carefully prepare all legal documentation and guide you through the process, ensuring every aspect is clear and transparent.
Stage 5: Completion
As we approach the finish line, we’ll coordinate with the lender’s solicitors to set your completion date. We’ll also prepare a clear financial statement for you to review and seek your final authority before proceeding.
On completion day, we’ll handle all financial transfers to ensure everything runs smoothly. Once your adviser and legal fees are paid, we’ll forward your net funds directly to you.
Stage 6: Your secure future
After completion, your lender will update the Land Registry to reflect your equity release plan. Rest assured, your home remains your sanctuary, and your right to stay in it for life is fully protected (or until you decide to move into residential care).
You have complete flexibility with how you manage your plan; for example, you can choose to make regular interest payments or simply let the interest compound. The decision is entirely yours.
From your initial appointment to receiving the funds in your account, we’re here every step of the way to answer your questions, provide guidance, and ensure you feel supported throughout your equity release journey.
Is using equity release to pay off debts right for you? Pros, cons & alternatives
Before they come to us, many of our clients have found themselves asking, “Should I use equity release to pay debt?” And it’s a question that deserves careful, compassionate consideration, as there may be more appropriate alternatives, like:
- Downsizing
- Remortgaging
- A personal loan
- Seeking help from organisations like Step Change or the National Debt Line.
If you decide to go ahead with equity release, a financial advisor will carefully explain the pros and cons. We’ve listed some of them below.
Advantages of equity release for debt relief include:
- Ability to release funds and clear debt.
- Stress reduction due to a better financial situation.
- Depending on the equity release model, there are no monthly repayments.
- Reduced risk of court action or repossession threat due to debts
Disadvantages include:
- A reduced estate for your family, although some plans allow you to preserve an inheritance for your family.
- Compound interest that builds over the years.
Why Choose Tivoli Legal?
When you’re facing debt or repossession, you need more than just legal advice; you need an expert team by your side.
If you’re struggling with debt and have chosen your equity release product, contact Tivoli Legal for client-centred, compassionate support.
You’re not alone. Tivoli Legal is here to help
If you’re struggling to manage debt, remember, you’re not alone, and help is available. For example, you have options like home loans, free debt advice, and remortgaging.
You can also release equity to pay off debt, but it’s important to weigh up the pros and cons carefully. This is why we stress the importance of seeking advice from an FCA-regulated financial adviser and choosing an equity release product backed by the Equity Release Council for added protection.
At Tivoli Legal, our compassionate team has seen firsthand the profound relief our clients feel when they finally break free from financial burdens. Regaining control of their finances and achieving a sense of security, often for the first time in years, is genuinely transformational.
Every conversation we have is confidential, and our advice is tailored to your unique situation.
Frequently Asked Questions (FAQs)
Can you use equity release to pay off debts?
Yes, you can. Many people use equity release to ease financial pressure, especially when dealing with loans or credit card debt. Whether you opt for a lump sum or regular payments, equity release can provide the funds needed to pay off debt, helping you regain control of your finances and reduce stress.
Is equity release a good way to clear debts?
It depends on your personal circumstances. While eliminating monthly debt payments will give you some peace of mind, remember you’re borrowing against your home’s value. You’re also potentially building compound interest that accumulates over the years.
Whether it’s good depends on equity release aligning with your long-term financial goals and family plans. Your financial adviser can tell you whether there are more affordable ways to borrow money and whether equity release is the best option for you.
What debts can I pay with equity release?
You can pay off credit card debt, personal loans, overdrafts, or outstanding bills, or help out family financially. Once you’ve received your money, there are no limitations on how you can use it.
Will equity release affect my benefits?
It can if you’re on means-tested benefits like Pension Credit, Council Tax Support, or Housing Benefit. If you are thinking of releasing equity as a lump sum or regular monthly payments, speak to the DWP first.
How will equity release affect my family’s inheritance?
We hear this concern a lot, and it’s completely understandable. Equity release will reduce the value of your estate because the loan (plus accumulated interest) is repaid when your home is sold.
On the plus side, it can improve your quality of life and relieve financial stress. If this is a specific concern, ask your financial adviser for plans that have an inheritance guarantee that preserves a portion of your home’s value for your loved ones.
Can I repay the equity release early?
You can. Traditionally, early repayment charges applied. However, updated standards announced by the Equity Release Council state, “All customers taking out new plans which meet the Equity Release Council standards must have the right to make penalty-free payments, subject to lending criteria”.
What happens if I have a later-life lending product and want to move house?
Modern equity release plans are generally portable, so you can take your plan with you if you move to a suitable new property. However, the house must meet the lender’s criteria, and you may have to pay some administrative costs.
What fees are involved with equity release?
Yes, fees include arrangement fees, valuation costs, legal fees, and ongoing adviser charges. A good adviser will be completely transparent about all fees upfront so you can make an informed decision.
Is equity release always the best solution?
It won’t be right for everyone. Depending on your circumstances, there may be better alternatives, such as downsizing, budgeting support, debt consolidation, or exploring benefit entitlements. Your financial adviser should discuss all your available options.
When you’re ready, the team at Tivoli Legal, your local equity release specialists in Cheltenham, offer a free, no obligation initial appointment.