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Cashing in on my endowment to get out of debt

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Cashing in on my endowment to get out of debt

edited 30 November -1 at 1:00AM in Loans
1 reply 2.7K views
alex04alex04 Forumite
1 posts
edited 30 November -1 at 1:00AM in Loans
I posted this under mortgages, but figured it might be more applicable here. Apolgies for the repeat.

through weddings/holidays and general frivolous overspending I'm in quite a bit of debt that I need to sort out. Selling the car, cancelling everything and working to a budget.
My endowment policy is worth £8500 if I cash it now, which would be very useful in paying off some of the debt. Planning on moving in a year or so, so would just start again with 25 year mortgage.
Is this the right thing to do? and what's the best way to do it? second hand market?
all help much appreciated.

Replies

  • alexei_2alexei_2 Forumite
    39 posts
    It depends on a number of things - firstly how expensive your debt is - if it is at 0% then there is no immediate rush to pay it off. If it's not at 0% can you transfer it to 0%. If you are now living within your means how long do you expect to take to pay off your existing debt?

    I would say that cashing in your endowment is a last resort but if you go down that road then definitely get a quoted on the second hand market and compare with your insurers surrender value.
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