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keep up with endowment payments?

tarchin
Posts: 29 Forumite
I am intending to sell property and rent. currently no excess income so started offering token £1 to all for £45k debt among creditors as advised by CCCS. Although i discussed endowment premiums with them - £11 and £35 it was not put on my financial statement.
i wonder what would be the effect of not paying endowments for a few months until house is sold? Was quoted surrender value of £11k and £1k by endowment companies in Jan. 07. Seems i could get more from specialised companies or auction. Would it be better to stop paying now (very limited budget) and top up from house-sale proceeds (equity about £30k), keep paying, or could i still sell endowments with missing premiums due?
Currently have in mind to use proceeds of hous/endowment sale to
a) pay off everything in full
b) try for a final settlement and possibly retain some capital
c)put lump sum in yielding account and pay creditors monthly (more than minimum!) while i figure out best option
Always open to advice / suggestions.
My full SOA is in my first post if relevant. again apologies if this is not the right place, could not find a relevant thread in other forums, and it is part of stategy to be debt free.
For anyone new, like me, we are definitely in the right place here - thanks to everyone and best wishes. Tarchin
i wonder what would be the effect of not paying endowments for a few months until house is sold? Was quoted surrender value of £11k and £1k by endowment companies in Jan. 07. Seems i could get more from specialised companies or auction. Would it be better to stop paying now (very limited budget) and top up from house-sale proceeds (equity about £30k), keep paying, or could i still sell endowments with missing premiums due?
Currently have in mind to use proceeds of hous/endowment sale to
a) pay off everything in full
b) try for a final settlement and possibly retain some capital
c)put lump sum in yielding account and pay creditors monthly (more than minimum!) while i figure out best option
Always open to advice / suggestions.
My full SOA is in my first post if relevant. again apologies if this is not the right place, could not find a relevant thread in other forums, and it is part of stategy to be debt free.
For anyone new, like me, we are definitely in the right place here - thanks to everyone and best wishes. Tarchin
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Comments
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Sorry but your question is a bit beyond me. The first point I suppose is were the endowments definitely on course to pay out ok (unlike others that have been in the paper). If they are then maybe it is a good idea to keep them. But I don't know whether they are tax efficient like an ISA is say. So I am really only guessing.
Perhaps on the savings board you could also ask this question?
chevI want a job that is less than an hour driving away from my house! Are you listening universe?
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Hi
I wouldn't just stop the payments without contacting the endowment company. If you do, they could treat you as being in default through breach of T&S, and not pay out everything your entitled to. Similarly the policy may not sell if it is in default.
I would continue to pay the premiums until you surrender or sell them. If you can't; then contact the endowment provider to make them "payed up". This means no more payments but the policy can continue to grow and would pay the surrender value.
Best wishes
MM0
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