Retirees in debt have found an expensive way to get relief

An upstart player in reverse mortgages has a novel idea for broadening its business – give people credit card-style convenience in tapping their home equity.

The Bloom Home Equity Prepaid Mastercard from Bloom Finance Co. is designed for people who want to occasionally supplement their household income. Pay for something with the card and the amount is added to your reverse mortgage.

Bloom’s core clients are typically those looking for big lump sums to pay off a mortgage carried over into retirement. Retiring with a mortgage and other debts is getting more common with living costs on the rise, and meeting that challenge can be a tough one for many retired homeowners.