Lloyds TSB and MBNA cards - advice please

pineapplesherbet

Hi, I'm posting this message for advice for my lovely sister in law who got ripped off by her husband when they divorced and basically got saddled with all his debt. She has been paying it off ever since. She is left now with debts of approx £8000 to Lloyds TSB (credit card) and around £8500 to MBNA. She is thinking of getting a lump sum brought forward from her pension to pay them as she is sick of them hanging over her life.

What I wondered was if anybody has an idea of amounts she is likely to get the companies down to when offering a cash settlement? She has been paying them off for around 8 years and pays £100 per month (in total) The interest on them has been frozen.

Also, I can't remember the name of the site forum I used to sort out my debts, they have a lot of info and advice on individual companies and debt companies and how to handle them. Is it the consumer credit counseling service or something like that? Thanks very much in advance

Teekaylon

Is it possible to get a lump sum from her pension? i thought you couldnt access any funds from a personal pension until you were 55 or maybe she is over 55?....


the site you are looking for could well be the CCCS yes , thats a lot of help i have found upon deciding to deal with my debts recently...

the alternative to that where you can get lots of template letters etc is the consumer action group (google it) or im sure someone on here will be along soon to help you better than i am able too as im not that experienced with the site yet as ive only just owned up to my own problems this last week....

good luck

pineapplesherbet

Hi, thanks for your reply. Re the pension, she works in that field so knows her stuff. As to her age, she's in her forties. I think she said you need a certain amount in your pension before you can do it but am not positive. Will look on the sites you mention, think consumer action group was the one I was thinking of. Hope all goes well for you and thanks again

jonesMUFCforever

She may work in that field but I am too of the opinion that she will not be able to take out part of her pension if she is in her 40's.
She might well be able to get a loan against it by the pension provider but why do this when it will decimate her final pension?

If it was me I would protect my pension at all costs even if I had to come to an arrangement to pay off the cards.

pineapplesherbet

Hi Jones MUC, thanks for your message. As well as working in that industry she is very intelligent and cautious so I'm sure she knows what she's doing.
I spent years paying off my debts in the way you mention but for her she wants it out of the way, it's a constant reminder of the past and amongst other things it affects her trying to get a mortgage too. Have been having a look on the CAG site too and found some good stuff about how to make offers, what to watch out for etc so will pass that and what you've all said along to her. Very many thanks for all the help

jonesMUFCforever

What is worse paying off now over a few years or living in retirement in poverty for many years because the pension she thought was there will not be ?