New word in my life - DEBT !!!

Worried_Comrade

yeh i'll continue paying my company pension and work my debts around it.

Verbatim

Speaking as someone older, now 57, I have seen my pension contributions reduced several times.
1 Equitable life, (and other cash strapped providers), put a charge(can't think of the correct term), so that when I transferred out they kept a proportion.
2 I had to use a qualified advisor to undertake the transfer to 'protect' me. He took a percentage, not just a straight fee. If I wanted to move again the same thing would apply.
3 My other, final salary pension, is looking increasingly dodgy.

Don't rely on pensions, also have cash ISAs and if you get the chance property.
Every financial advisor I have ever seen has told me to sell my properties as the return was less than I'd get from shares etc. I have only ever lost money or made very little with shares. You have to have hundreds of thousands invested before your fund would be actively managed. I don't. I am glad I took my parents' advice and kept the property. It's under my control not some here today gone tomorrow advisor who is thinking about his/her commission rather than my long term security.

If you have a final salary pension hang on to it. If it's not it will be "Defined Contribution" and you'll have to buy an annuity with your accumulated pot. You need about a hundred thousand saved to get £6000 per year back as pension. I have stopped paying into mine and have concentrated on cash ISAs in recent years.

Sorry if this is a bit off message on the dfw board.

velrist

Harry_Powell wrote: »

Please don't be tempted to stop paying into a pension in order to focus on your debt. All you'll be doing is moving your financial problems from a time when you're young and healthy (and able to work overtime, a second job, etc) to a time when you're old, possibly frail and can't do a damned thing about it (i.e. when you retire).

Too many people, especially on MSE seem to have a 'crash diet' mentality, where they put all their efforts into a single financial goal (such as debt repayment, mortgage overpayments, etc) instead of taking a balanced approach.

I think this is very sound advice. There is no 'one size fits all' approach to managing your debts. If I know someone is working two jobs and overtime to try to repay their debts then I am not going to suggest they deny themselves a beer or glass of wine at the weekend to save £5, when I was working 60 hours a week, it was small indulgences that stopped me from being thoroughly miserable.

There are intelligent things you can do to reduce your debts before you start to cut back on everything non-essential. Just like dieting, I could lose a stone in a month and be miserable or I could take a bit longer and feel like it was something that could be sustained for a longer period of time or indefinitely. Taking a balanced approached will yield better results in my opinion.

Jeffers90

Just following on from Tixy - you definately need to consider your partners credit rating. I found this thread http://forums.moneysavingexpert.com/showthread.html?p=24889449 really helpful.

And also, it's not just how much debt you have, you need to consider the type of debt too. I was reading http://www.gregorypennington.com/debt-management-features/3037/dont-ignore-debt-act-on-it-now.htm before and it made some interesting points about the type of debt and also the way you tackle them.

All in all - the main thing is you are seeking help from genuine people on this forum & that is definately a step in the right direction.

Hope you get sorted!

Worried_Comrade

Tixy wrote: »

If you no longer have any joint financial products you need to complete a notice of disassociation form - here on equifax, and similar on experian.

Do you have the link for Experian form ?? as i cant seen to find it

WC

Harry_Powell

Verbatim wrote: »

You need about a hundred thousand saved to get £600 per year back as pension.

Typo? That should be £6k, and that's only if you include a spouse's pension, and guarantee. You can get more by shopping around and not having the spouse's pension if it's not required.

I don't want to take the OP's thread off-topic, but think that if you have worries about your pension provision you should post on the pensions board. Your final salary pension has some hefty goverment backed guarantees (upto 90% of its projected value) but those guys are way more clued up on pensions than I am and will be able to fill you in much better.

Sorry to hear that you've had problems with shares and perhaps some bad advice. I have to say though that I have heard/seen more horror stories regarding people investing in property than I have seen with people investing in shares. Each to their own though, and everyone should do their own research, because as someone has already said, there are no 'one size fits all' approaches to personal finance.

Worried_Comrade

Update....

If found out that the Lloyds Overdraft (£2430) has been passed to Moorcroft Debt Recovery.

Now if i was too go into my local branch of Lloyds would i be able to make arrangements with them to pay the debt outstanding over a period of time or must i now deal with MOBcroft ??

Regards

WC

Verbatim

Harry_Powell wrote: »

Typo? That should be £6k .

Arrg I realized I'd done this earlier and have searched back to correct.

No worries thanks. I've taken care to provide.

Many people have lost on shares, not just on stock market dives either! Property owned by self rather than investment schemes I meant. Has been good for me but is not for everyone.

Apols to OP for sidetracking thread.

Worried_Comrade

Worried_Comrade wrote: »

Update....

If found out that the Lloyds Overdraft (£2430) has been passed to Moorcroft Debt Recovery.

Now if i was too go into my local branch of Lloyds would i be able to make arrangements with them to pay the debt outstanding over a period of time or must i now deal with MOBcroft ??

Regards

WC

Can anyone help with above please ???

Harry_Powell

AFAIK, once the debt has been sold to a debt collecting agency, you have to deal with the agency. Your debt is no longer held by Lloyds.

You need to get in touch with the Agency and see what your options are.