Stop paying pension to pay overdraft?

mrsmulac

Hello everyone!

I'm new here so sorry if I've put this in the wrong place. Just looking for a bit of advice.

I am 23, have been working as a teacher since September and currently have almost £3k debt on overdrafts that I ran up during my time at uni (unavoidably thanks to student finance but that's another matter!).

At the moment I am struggling to pay anything off my overdrafts as I have very little money left each month from things I HAVE to pay (rent, car on finance etc.)

I was wondering if it would be horribly unwise to stop paying into my pension for a while (£115 p/month) and use this as a minimum amount to pay off each month.

Any thoughts? Hope I have explained well enough.

Thanks in advance!

rising_from_the_ashes

Hi Mrs M - welcome to MSE.

In a nutshell .... yes, it would be unwise to stop paying the pension to clear your debts if there are any other alternatives.

A teacher's pension is a great one as the employer also contributed. Your pension will be calculated on No of years paid into the scheme, so you want as many as poss.

Also, who knows what the future may bring - if you pay in from a young age (as you are) then when you're older you may be able to retire earlier (also remember that state pension ages are also rising .....) but still on a decent pension.

Much better to make cuts elsewhere - pop up a statement of affairs http://www.makesenseofcards.com/soacalc.html and you'll get loads of advice on where cuts could be made / what to pay back first etc.

InsertWittyName

Your debt is reasonably small at £3k and the teacher's pension is a good one.

I can't say anymore than what rising from the ashes has already - just do your best to cut back and pay it off as soon as you can.