Debt and endowment can they be linked?

eden1969

If you have an endowment which is no longer linked to a mortage but you have old debt from the bank you have the endowment with will they link the two together when you try to cash out or get the surrender value? Endowment and old debit is with Lloyds TSB. Old debit is a credit card and overdraft.

opinions4u

I sincerely hope they do, as I suspect you don't want to repay your delinquent debts.

HugoSP

opinions4u wrote: »

I sincerely hope they do, as I suspect you don't want to repay your delinquent debts.

Hmm, just how have you worked that one out? Maybe I missed something. It might be true for all I know but it's not helpful now is it?

Most people like to read these threads in the hope of finding some useful info, not to waste their time with abstract assumptions as to the OPs intentions.

Your signature reads:

I have worked in financial services previously. This means I do have a good background to comment, but doesn't necessarily mean I am always right. As my wife often reminds me. Comments I make are to try and help all readers, not just the original poster. Feel free to correct me if I am 'off the pace'!

It seems that you are 'off the pace'. Just thought I'd let you know.

I'm not a financial adviser but I wouldn't put it past the bank to eye up your endowment in case you defaulted. They know you've got savings with them and a debt that you haven't paid.

Assuming the debts aren't written off I would consider one of the following.

1) Make sure your debts are restructured as much as possible to reduce the cost of maintaining them, and in time they will take a smaller chunck of your endowment to pay them off.

2) Talk to your bank about some sort of repayment plan if you can't meet the required payments

3) Just pay them off, if you can.

The advice that finance specialists give to anyone who is trying to clear debts is to tackle those with the higher costs first.

opinions4u

HugoSP wrote: »

Hmm, just how have you worked that one out? Maybe I missed something. It might be true for all I know but it's not helpful now is it?

Most people like to read these threads in the hope of finding some useful info, not to waste their time with abstract assumptions as to the OPs intentions.

Your signature reads:

I have worked in financial services previously. This means I do have a good background to comment, but doesn't necessarily mean I am always right. As my wife often reminds me. Comments I make are to try and help all readers, not just the original poster. Feel free to correct me if I am 'off the pace'!

It seems that you are 'off the pace'. Just thought I'd let you know.

I have no objection to your opinion.

In my defence, I did use the word "suspect".

From a wider readers' point of view, I think any implication that individuals should take responsibility for their debts is a good thing for them and a good thing for our society. At present, many people seem to think it's ok for people to walk away from their commitments, even if they have the means to pay them. I find that distasteful.