When you have already reached retirement age, getting a loan might be quite tricky. Most creditors will view you as a high-risk borrower and won't give you a loan. Therefore, if you find a loan provider that accepts your application, it might be easy for you to feel tempted to grab it. You also have an urgent expense to worry about, so it's understandable if you want to take the loan.
The problem is that given your age, creditors will only offer you a loan if you agree to high-interest rates and a problematic repayment scheme. Given your lack of a stable income source, you might end up in a difficult position if you agree to these terms. You might even end up paying for the interest alone after some time, while the principal amount stays the same.
If you badly need money now and you own a property, you might want to consider equity release. With this loan, you don’t need to repay the loan right away. You use the property as collateral, but you don’t need to leave. There’s no threat of losing the roof over your head any time soon.
The creditor will only sell the property when you die, and the sale value will repay the loan. Even with high interest, there will still be enough money left from the sale. This can be given to your kids as an inheritance. If you worry that the sale value might not be as high as your total accumulated debt, it’s okay. There’s a “no negative equity rule” which means that the people you leave behind won’t have to shoulder the expense.
Talk to experts first:
If you worry about this undertaking and you think that equity release won’t be suitable for you, it helps to start discussing it with experts. You can find equity release advisers like the ones at http://www.55plusequityrelease.com who are willing to share with you their knowledge in this area. They will clarify things you feel confused about until you are confident that you’re getting the right loan.
It also helps that you have the right information so that you won’t rely on a loan that will only make you suffer. Even when you feel desperate to get money and pay for urgent transactions, you shouldn’t turn to an unfair loan to save you.
You deserve freedom from financial woes:
At your age, you need to stop worrying about your finances. You worked hard your entire life. You need to have enough money to spend on your needs, and also do the other things you didn’t do while you were still working. You don't have a lot of responsibilities now, and you also don't need to go to a regular job. You can enjoy the money you saved over the years. If you don't have enough, you can count on equity release. Many people have felt relief because they came across this type of loan.