Help please

Obsessedwithdebt

Reposted here:
Hi everyone, I am at the moment, chipping away at our debt, and I have a lapsed endowment policy, that I stopped paying in 2008 as things were financially in a terrible state, due to oh business drying up due to recession. Anyway, it is a royal London endowment, I have just received the surrender value of £1986.71. really haven't got a clue what to do, don't know enough about endowments do I leave it and let it grow? Will it grow, anymore? Or shall I take the money and pay some more of our debt off? Any advice would be greatly appreciated.

dancingfairy

Hi. I think that this might not be the best board to post your query on. You might get more help and advice on the savings and investment board or the mortgage board (if it's a mortgage endowment).
It also depends on what your financial position right now is - it'll make a big difference whether you need it now or whether you can afford to wait.
What rate of interest are you paying on your debts?
What rate of interest do you think the endowment will grow at (probably best go for a conservative estimate).

I know nothing about endowments but on the surface knowing that you have debts and the amount of endowment is not huge I would take it and pay off the debts. Obviously it depends on get out clauses and whether there are any bonueses for keeping it a certain length of time etc. I have also assumed that you are perhaps paying 19% interest or more on some of your debts.
df

Obsessedwithdebt

Thanks for your response, did post it on endowment thread but no response really and really eager to get going with this, as quicker I sort it it will be off my debt as I am really thinking this is the best way to go. It Is not a mortgage endowment.

At the moment debts are all frozen as with dca.