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Should I surrender my endowment to pay debts
tamar72
Posts: 1 Newbie
Hi
I am new to these forums, but have been lurking for some time.
I have £10000 worth of debt on 4 credit cards, currently paying the minimum of £160 per month. Two of the cards have 0% balances which are due to end in a couple of months
I work part time and take home around £700 per month.
When I had a mortgage I also took out a Standard Life endowment policy of £18,000 over 25 years. This is due to mature in 2020.
There is as expected a shortfall and is estimated to return around £11,000-£12,000.
I no longer have a mortgage as the flat was sold and mortgage paid with the sale, so the endowment is now life assurance rated at £18,000
The policy also has a with profits bonus rated at 1.5% per year. A bonus of £300 would be paid on maturity
I called Standard Life yesterday to get the current value which is £7,300. I pay a monthly premium of £30.
My thoughts are to surrender the policy and use the money to pay my debts. This together with shares of around £500 would leave around £2,200 of debt, but the majority would then be paid.
I would like to use the £30 a month to pay into a private pension or invest elsewhere.
Anybody any thoughts or suggestions on this.
Many thanks
I am new to these forums, but have been lurking for some time.
I have £10000 worth of debt on 4 credit cards, currently paying the minimum of £160 per month. Two of the cards have 0% balances which are due to end in a couple of months
I work part time and take home around £700 per month.
When I had a mortgage I also took out a Standard Life endowment policy of £18,000 over 25 years. This is due to mature in 2020.
There is as expected a shortfall and is estimated to return around £11,000-£12,000.
I no longer have a mortgage as the flat was sold and mortgage paid with the sale, so the endowment is now life assurance rated at £18,000
The policy also has a with profits bonus rated at 1.5% per year. A bonus of £300 would be paid on maturity
I called Standard Life yesterday to get the current value which is £7,300. I pay a monthly premium of £30.
My thoughts are to surrender the policy and use the money to pay my debts. This together with shares of around £500 would leave around £2,200 of debt, but the majority would then be paid.
I would like to use the £30 a month to pay into a private pension or invest elsewhere.
Anybody any thoughts or suggestions on this.
Many thanks
0
Comments
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Just did a quick calculation wait until 2020 and get 11000(ish) or get 7300 now - difference = £3700. Pay £30 per month for 8 years = £2800. Difference around £1000, I'd say go for it you'll probably save this in interest!!!Official DFW nerd - 282 'Proud To Be Dealing With My Debts'
C.R.A.P.R.O.L.L.Z member # 560 -
Complain about your endowment. I used to do endowment compliants and it's worth trying. The person who sold it would have to redress you.0
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That is if you have not been time barred0
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