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Where to get some advice
Comments
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Ditto the above from EssexHebridean.
The way I see it is that you need to give it another couple of months at least. Use that time to work out how much you will need to earn from work+pension when you slow down the work to 5,4,3,3,2 days a week.
As above, you really need to find out how much of a pension pot you will need to have to provide those figures, both now for the reduced hours, and later if you take it in a few years.
While it would save you a lot more interest if you pay off the credit cards first, I can see that the mortgage is going to give you more financial relief on a day to day basis. You say you are thinking of downsizing (for around £100k less), would this be to a property in the same area where you could continue to work? If so is it worth bringing forwards the downsize and using the equity to pay the cards and mortgage meaning that you could significantly reduce work and leave the pension intact, or, could you extend the mortgage time a bit and reduce the payments, again giving you financial relief?
Just ideas for you to think over, if you can get the basic numbers done for each scenario, then when you get the actual pension forecast you can make a better decision for your circumstances.
It may also be an option (if you do not want credit for things like a new car for a while), to stop payments on the cards for 3-6 months until they default. this will stop the interest being charged, and allow you to save a big chunk of what you were paying them for things like a car or other big emergency purchase. Then start paying at £1 a month, until you are able to sell the house and downsize, and see if by then you can make an offer at a lower % to pay off the cards. This may be an option that could work for your situation.
Good luck whatever you decide.
Credit card debt - NIL
Home improvement secured loans 30,130/41,000 and 23,156/28,000 End 2027 and 2029
Mortgage 64,513/100,000 End Nov 2035
2022 all rolling into new mortgage + extra to finish house. 125,000 End 20361 -
Bringing forward the downsize, if feasible, would be a very good option - gets rid of your mortgage and debts and gives you an opportunity to trial scaling back your work at a time when you still have options for increasing your pension pot.Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.phpFor free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.1
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Is the mortgage payment fixed at £1700 or are you paying more to clear it early.
Just checking as some forum members chose to overpay for the peace of mind of having no mortgage.1
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