Brogden's Debt Disaster & Self Managed DMP!

Brogden

Dansmam wrote: »

:j:T:j Applauds Brogden`s achievements. Not at all ordinary!

Cheers!

Couldn't resist that :rotfl:!!

Verbatim

Another award to Broggers. Next up the Nobel for debt busting.
Ruddy predictive text had Brothers there again!

Brogden

Verbatim wrote: »

Another award to Broggers. Next up the Nobel for debt busting.
Ruddy predictive text had Brothers there again!

Thanks again Sister Verb

There's no prize due, I can assure you ! It's all just about somebody stupidly getting into financial difficulty in this regime where you are allowed a way to start getting yourself out and ultimately recover completely.

I hate politics but I would always vote for UK

Broggers x

Brogden

I would like to say that the dust has settled on my recent P&F's but I still have two £500 instalments to pay to Carboot on my Hellifax CC debt. I should be happy about that deal and in honesty I am!

I spoke again to the Gnat's Vest as I received a text asking me to ring them urgently. They were 'incorrectly' requesting a payment plan review. The plan doesn't expire until autumn.....pondlife :mad: !!Whilst I was on the phone I advised them that I had recently reduced my debt burden through generous P&F offers with others and I wished they would be a little more flexible but no.....'We are the Gnats Vest and its 80% or a payment plan where you will be paying us from the grave.' OK...run along now....

Now...it's all pensions in the news isn't it? Does anybody trust a politician with 'pensions legislation?' Quite possibly not. Does anybody trust a politician with anything?

I know a couple of people on here are interested in this subject and I think they are of a similar mindset to myself - they lack belief. Why am I interested? Well I won't bleat or be pathetic as we can all make errors of judgement and unfortunate situations can befall us BUT I want a legitimate route to accumulate funds in the most efficient way possible and do something to help to make up for wastefulness of the past.

I want these funds for the following reasons:-

1. To reduce or pay down the mortgage.
2. Further reduce or eliminate the debts.
3. To be in a position that if suddenly ejected from my job in the future, I am not instantly cast into hell - affording at the least a little time to sort something else out.
4. To be keeping my options open……..
5. To possibly provide additional retirement income although my first port of call for this is my DB scheme membership and State Benefit. (I do believe it is right that the state should provide us with a basic income - my moderate, left of centre views showing themselves slightly there !!. )

So why do I not reduce the mortgage by paying directly? Why save in a pension to pay later? The answer to this is simply relief from tax and even relief from employee NIC's. I have already made my first DC contribution and it affords a ‘bonus’ in excess of 70%!!! :T

I am one of the hard pressed, lowly workers who pays tax at 40%. It always struck me as odd when things have been difficult from time to time to be in what for years was the higher end of the earning spectrum....? Yes there is a 45% rate but I will never hit that unless I blow my successfully huge pension pot in one go.

There could be good reasons for doubting that politicians will allow this very thing to continue and it is already announced that the Lifetime Allowance is to be cut to £1 million. Obviously this cannot possibly affect me but what about the more interesting and relevant parts?

- Although the pension freedoms are so new they haven’t yet arrived, this is such a massive turning point in UK pensions legislation, I cannot now any party daring to remove this and take us back to the old world where the only route was for an income to be received ‘on the drip’ via an annuity or the old ‘capped drawdown.’


- The tax free ‘pension commencement lump sum’ of 25% has been with us for many years and it has sometimes been possible for some to receive more but I feel it is almost politically impossible for any party to take this away. Famous last words but…………..:o


- Most importantly tax relief on the contributions themselves. Would Labour and the Lib Dems like to reduce this? Seemingly so and maybe there will be some tinkering about at some stage. It may or may not affect a modest person like me and may be aimed at the big earners but I cannot foresee a position where there is no tax incentive to tuck funds away for later in life even if the attractiveness should be reduced slightly. I will aim to enjoy the current situation whilst it is there. If reliefs reduce I will have to work out whether my plan still has merit.


Oh dear such ‘grey’ subject matter . Thanks to anyone who made it through that. I will include some figures and calculations later and promise that my next post will be much more frivolous – like you seem to expect from me .

Broggers :):)

in_need_of_direction

I know I should engage more with pensions but like you, I'm not convinced about how things will pan out. For that and other reasons, I going the not MSE route of overpaying my mortgage in the hope of owning a tangible asset outright. It's not very MSE as my interest rate is 0.66%

Brogden

in_need_of_direction wrote: »

I know I should engage more with pensions but like you, I'm not convinced about how things will pan out. For that and other reasons, I going the not MSE route of overpaying my mortgage in the hope of owning a tangible asset outright. It's not very MSE as my interest rate is 0.66%

I could not possibly suggest that you are the slightest bit wrong INOD . Part of my thinking is to do exactly what you do and in honesty......I will do a bit of that too. The main reason being I don't want to hyperventilate, have kittens and a heartattack later in life if the corporation casts me out. It would be nice that the mortgage didn't instantly go into default if you know what I mean :eek:

Brogden

Happy Saturday All

Happily I am now off work until the day after the Easter bank holiday so I pushed things a bit yesterday as I didn't want a load of loose ends hanging over as usually happens working from home. Everything done and a 'sarcastic' email received from management just to round everything off :mad: !! I thought........does this threaten my position and ability to earn? No...it doesn't......it's just a bit of carp from a tw*t :rotfl:!! Do I care? Can pigs fly? No I do not give a damn !! Onwards and upwards.

I still have a lot of spreadsheet fiddling to do. As alluded to previously, I need to make sure I am legitimately reducing tax payments to ensure the maximum amounts of funds are going to the right places and I want the new Brogdonian regime to kick off in the new tax year so I need to get my skates on.

Mrs B has indicated her final decision to give up work in the next few months so that all has to be factored into the calculations too.

So.....clearing the garden, cleaning the patio, emulsion on the walls, painting the skirting, painting the gates, clearing out unwanted clothes, re-grouting the tiles and.........my gargantuan pile of shirts and jeans to iron :rotfl:!!

Have a great weekend all !!

Broggers

in_need_of_direction

Hope I'm not speaking out of turn but could mrs b not stick with a job until at least the debts were clear?

Dansmam

Pensions. For most of my working life my pension projection said £120k lump sum at retirement. Now it say £30k. When I'm 67. After 26 years of planning my whole family finances round what I was told (didn't ask) I would have. Well that's my mortgage repayment plan stuffed. Average local government pension is under £6k so I consider myself lucky but betrayed. Still, the shouters will be happy so at least I can lift the national mood.:beer:
Brogden I too am worried about Mrs B`s plan. Is she just in a huff or does she mean it?
Off to raise some funds for local club. Not a penny in it for me but it keeps our little community together :T:T:T

Puzzcat

Hi Brogs,


So.. I agree with the others.. why is Mrs B giving up work? Your debts are not yours alone.. I'm sure you didn't spend all the money on yourself and surely this should be a shared journey your travelling.. All a bit rich coming from a Puzz in a very similar boat.. maybe a pea green one....:D


The difference is my OH although not involved in my debts, I know they were run up by my spendiing on all of us he does sort of help pay them off by giving me money each week.


Hope you have a lovely break from work, I have decided not to take any time off, bar 1 flexi day. I seem to have done nothing but part time for months using up last years so best crack on and show my face for awhile in case they forget I work there..


Puzz. x