Help, need to know I'm doing the right thing

Beatle_Ray

Hi Everyone,

I receive Martins emai every week and have finally decided to join the chat forum since I need some strong advise and the reassurance I'm doing the right thing.

OK - Here is the problem, married, no thats not the problem, no kids, income gross of about £35,000, wife works part time, between us and all the debt is in my name totals to just over £30,000.

Breakdown is as rough outline

Abbey Credit card £9900 - Interest free until May 2007

Alliance & leicester Credit Card £2300

Barclaycard £500 about.

Mint credit card £7700

Halfiax credit card £6600

Virgin credit card £3950

Now, I have an endowment policy which I kept from previous mortgage now running as a savings plan, this is with Sun Life, AXA, last statement showed it at value of £11500, it costs £66.69 each month to pay into, plus I have £500 in premium bonds, should I cash in the endownment policy and pay off the credit cards, selecting Virgin, A & L and virgin to go first then pay off remainder of either halifax or mint, I personally dont need the cards but my wife does use the Halifax one, take home pay is about £1600 per month,

I think I can reduce this debt to about £6000 by this time next year.

Advice please.

Everything would be appreciated and valued.

Thank you

CLAPTON

in general it makes little sense to have savings when you are paying high interest rates on debts

so yes pay off the loans from the endowment funds...paying those with the highest APR first.

also have you checked whether you can sell the endownment rather than cash it in ..you may find that you get a higher price.

once paid off and if a CC is still to be used for convenience then set up a DD for the full amount each month so the debts wont build up again.

have you addressed the issues that caused the debts in the first place? if you feel its useful please do post a SOA and see whether people here can help reduce spending etc.

lynzpower

you say your wife is using a card- why is she using debt? It sounds obvious, but youll never get out of debt while you are using credit cards ( unless you pay the balance off completely monthly of course)

I agree with clapton, a detailed SOA should show what you need to find, sorting out some cheaper suppliers and finding out where every penny of your moeny goes

Beatle_Ray

Hi,

Thanks for the replies, I'm being ignorant here, what is a SOA, any ideas as to who will buy endowment policy.

Thanks

Beatle Ray

lynzpower

An SOA is a statement of affairs.

Read southern scousers "first time posters" sticky at the top of the forum

Maybe you could ask in mortgages & endowments about who buys there are loads of different cos who buy, but Ive no idea how to ensure you get the best deal the mortgage forum would know

jenchin66

See this thread for info on SOA:j :j

http://forums.moneysavingexpert.com/showthread.html?t=107280

angelavdavis

Hiya,

SOA is a Statement of Affairs. A complete listing of your incomings and outgoings, interest rates for loans/credit cards, etc. Check out Martin's article:
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1089226742,17582,,

From this, other forum members can assist you better in cutting back/other recommendations.

Good luck!

CLAPTON

selling endowments... either follow lynzpowers excellent advice re the mortgage and endowment board or simply google 'endowments' ..you will find several companies to give you a quote a quote which you can compare with the cash in value.

bluezone

An SOA is a statement of affairs. You write down your total income and then in detail write down your outgoings. I'm sure there is a sticky ssomewhere explaining it more