The UK has been affected by the economic downturn and financial crises just as much as the rest of the Western world. In 2008 and 2009 the government under PM Gordon Brown intervened to save the Northern Rock Building Society and the RBS and Lloyds/HBOS banking groups from collapse. The new government under David Cameron is now taking strict austerity measures to protect the country’s credit rating and to reduce the budget deficit. Unfortunately this is causing a lot of financial pain, and the real possibility that the economy will drift back into a period of zero or negative growth.

More people than normal are asking for help from charities such as CAB (Citizens Advice Bureau), and the local CAB offices report that many need help with very high levels of personal debt. Other major areas of concern are welfare benefits and housing issues.

Debt problems often come to a head due to a sudden financial shock, such as loss of income due to unemployment or illness. Rising prices (especially fuel and utility bills) may also cause problems as incomes are no longer keeping pace with inflation, and less disposable income is left over for repaying loans and credit card bills.

Although people can become very stressed by debt problems, and it is true that money problems are a major cause of marriage and family breakups, there is free and confidential help available. Ignoring financial problems does not make them go away, and often the best course of action is to face up to the problem, no matter how difficult that sounds.

In all parts of the UK, people can find services which offer confidential, free-of-charge and no-obligation debt advice. These services are provided locally by Citizens Advice Bureaus, which can be found in most towns and cities, and nationally by groups such as CCCS, National Debtline and Payplan.

Trained advisers can help clients identify income, expenses, assets etc and classify debts into priority and non-priority groups. Different solutions can be explored, such as DMPs (Debt Management Plans) and IVAs (Individual Voluntary Arrangements). These arrangements are often acceptable to creditors, and are always based on affordable monthly payments reducing the total amount owed while leaving enough money for all necessary living expenses.

For seniors, the recession is a terribly uncertain time. Rising living and housing costs and potential cuts to government assistance mean less social security and pension earnings to take care of their increasing health needs. The recession is troubling for all families, but is particularly difficult for seniors who do not have time, ability or opportunity to re-enter the job market.

Moreover, they are at an age when they have earned their right to a relaxing retirement. In this recession, reverse mortgages become a lifeline to seniors, helping them save their home and make the most of their retirement years. Many homeowners are not aware of the opportunity that the reverse mortgage provides them. At no penalty to the borrower and great interest rates, the reverse mortgage is a great return for the previous years spent paying a mortgage.

The reverse mortgage helps senior homeowners who are struggling to manage their rising medical bills and other expenses during their retirement on top of mortgage payments.

The program allows these homeowners to convert equity in their homes to a tax-free income, without increased mortgage payments, and without the risk or reality of having to sell their home or sign over the title. But what happens to even the most stable and reliable of programs in the midst of an economic recession? When it comes to Reverse Mortgages, they only gather strength and continue to support borrowers.

These days, a new, higher lending limit will enable borrowers to obtain a greater benefit if their home value is higher than the previous HUD limit, when it is needed most. The U.S. Department of Housing and Urban Development raised the reverse mortgage limits to 5,500 to help stimulate the economy and provide immediate relief to senior homeowners facing unaffordable payments.

Now is the greatest time in history to qualify for a Reverse Mortgage.

The implementation of this limit has increased financial options for senior homeowners during this difficult time and will significantly ease the burden of retirement during the economic downturn. The new limit is nearly double that of the limit from before the last increase in 2008, which consisted of a jump from 2,790 to 7,000.

Reverse Mortgage rates are at an all time low. It is now that financial stability become most important. Seniors simply cannot afford to overlook the benefits of a Reverse Mortgage during an economic downturn. Seniors may be in the prime of their life, but become more financially vulnerable and less resilient when outside circumstances threaten their retirement funds. Seniors who own their home may not realize they are sitting on a nest egg that could allow them more financial freedom in a recession than in a time of economic abundance.

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