Cash in Endowment to repay cc ?

gingefam

Hi - looking for some help/advice here please.

Have ex CU Homemaker WP Endowment. Not assigned to mortage kept for savings purposes only. Due to mature in 2017 Target amount 29,150.

I pay 35.69 pcm and have paid in 8137 to date.
Received a surrender valuation of 10437 this morning.

Received another letter from Aviva last week about shortfall. By 2017 I will have paid in 11135 and have projected final amounts of 16400 (4%), 18600 (6%), 21000 (8%)

Also have potential (but not guaranteed Mortgage Promise amout) of 4650.

I also have a cc at 8900 at 6.9% Life of Balance. (Paying 300 pcm)

Is it better to surrender the endowment, pay off the ccard and put the rest off the mortgage - then OP the mortgage by 335.69 each month - or keep going with both as I am at the moment ?
Having trouble working out how the figures stack up in the longer term. (NB - Mortgage is offset 4.39 % - money in offset pot is stoozed and/or for my kids so dont want to dip into it).

Zapping the 8900 loan will make me debt free except the mortgage - and I really like that idea, but dont want to make an expensive financial mistake.

All comments / advice welcome.

dunstonh

What is the current value/position?

Surrender will kiss goodbye to the £4650 MEP. It will also remove your life assurance and there could be a penalty (hence why we need to know the current position).

Normally, short term debt it better to be cleared but the cost of surrender could be more than the interest you will pay on the CC.

gingefam

Thanks dunstonh.

Current value is 12622.

gingefam

bumpity-bump.

Would love some help from figures folk. Getting lost in my maths.

Ta