Dipping into pension pot to pay off credit card debt.

underboyleheating

lisyloo wrote: »

What type of pension do you have?
Is it a SIPP? or a company plan?


A pension is not a current account and there may be serious implcations from stating to draw from it.
So please don't do anything until fully researched.
Can you start by telling us what type of pension you have.


Have you done an SOA (statement of affarirs).
If you can tell communicate your incomings and outgoing then you might get some good advice.

It’s a with profits cash accumulation fund that was taken out in 1987. However, I no longer pay into it as I have another pension the I contribute to every month. I’m currently self employed.

underboyleheating

Willing2Learn wrote: »

If you could get a 0% balance transfer card on a 36 months promotion then the amount due every month would be £139/month (plus initial transfer fee). You would then be debt free after 3 years. Is that squeezable do you think?

I *think* there is also a possible 48 month promotion available too, which would reduce the monthly payments...

My finances change from month to month, so I couldn’t guarantee being able to make those payments. I probably could, however, I would worry about it.

underboyleheating

So I currently have three pensions, an all to brief work based pension, the one I took out in 1987 which I no longer pay into, and one I took out in the mid 90s that I still contribute to. I recently spoke with an advisor from my 1987 pension and he said that all of the pensions I have are performing well.

MallyGirl

I suggest moving this to the Pensions section as it is probably a better place for responses.

underboyleheating

MallyGirl wrote: »

I suggest moving this to the Pensions section as it is probably a better place for responses.

Whatever you think is best to get a solution. Cheers.

National_Debtline

Hi there


The rules governing defined contribution pensions changed in 2015 and now allow you to withdraw a tax free lump sum of 25%. It is essential you seek specialist advice before withdrawing any money from your pension pot as it can have a big effect on your financial future, including current and future benefit entitlement.


You can get free, specialist advice on your pension options from the Pensions Advisory Service on 0300 123 1047.


Best wishes


Susie
@natdebtline

redfox

we move threads if we think they will get more help elsewhere (please read the forum rule) so this thread has been moved to another board. If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"]forumteam@moneysavingexpert.com[/EMAIL]

wjr4

Do you know exactly what type of pension(s) they are? As they started a while ago, there’s a high change they have either guarantees or a higher than 25% tax-free lump sum (known as protected tax-free cash). Make sure you review them properly before doing anything.

underboyleheating

wjr4 wrote: »

Do you know exactly what type of pension(s) they are? As they started a while ago, there’s a high change they have either guarantees or a higher than 25% tax-free lump sum (known as protected tax-free cash). Make sure you review them properly before doing anything.

I had a pension review recently from the Prudential. He looked at my Prudential pension, CIS Pension (now Royal London) and my Standard Life (frozen former works pension) and they are all performing well despite me not having payed into the Prudential or Standard Life for years. I still contribute to my CIS pension on a monthly basis.

I had the idea of cancelling my credit card debt by taking the money owed from my 1987 Prudential pension and paying it directly into my credit card, as currently I see no way that I can pay that debt back anytime soon.

I’m posting here to judge whether or not this is a good or bad idea. Or is there another option? I’m self employed and my income varies from month to month.

underboyleheating

All three pensions are the same type, With-Profits.