Access pension early to clear/reduce debt?

Lankylocky

I have 12k card debt (3k on 3 x 0% credit cards till March 2025 + 3k on 15% purchase credit card). Plus 2k overdraft. ( 50k left on mortgage.  I'll leave mortgage out of this). The cc & overdraft debt are getting me down. Racked up through combination of stagnant  wage,Growing teens, single parent  & no emergency fund. Used cards for many car & household problems. But definitely some reckless spending too! I'm late 50's and can take from 2 of my pensions now or when I'm 60. I'm thinking of cashing in one small 8k one to put aside an emergency fund if 2k and pay the rest off of some cards. Or could take 25% cash from another one now rather than 3 years time, problem is that'd give me 11k cash & £200 pm now rather than  17k and 400 pm  in 3 years. The appeal of being able to clear everything now is huge but not sure if that's a mistake? I'd still have another 2 pensions ( plus the stste one) at retirement age

MorningcoffeeIV

Lankylocky said:

The appeal of being able to clear everything now is huge but not sure if that's a mistake? 

Almost certainly.

Post on the DFW boards for advice on getting rid of the debt without screwing your future self.

Brie

You need to ensure that you've addressed the issues that led to these debts so that you don't run into a similar situation in a few years when you have no way to address them.  

As already mentioned go on to the Debt Free forum for champion advice on how to nuke the lot without being impoverished in retirement.  

MEM62

Lankylocky said:

The appeal of being able to clear everything now is huge but not sure if that's a mistake? 

It almost certainly would be a mistake.  Your income is for covering your current expenditure, your pension provision is to cover your living costs when you have retired.  For most of us, our income in retirement is less than it is during our working years so to rob your future, less affluent, self  self to pay debts now at a time when your income is greater is just plain silly.