Separating after 26 years.

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fbrander
fbrander Posts: 65 Forumite
in Credit cards
Hi. Need some advice please. My husband and I are separating (amicably) after 26 years and are trying to sort out our finances. I am working part time but looking to increase my hours and he is retired. We are mortgage free thankfully.
However I have a personal credit card debt with M&S of £11000. I know its horrific and make no excuse but it just got out of hand due to university fees and the like.
What are my options? The interest rate is a horrendous 24% apr.
Should I contact them in the first instance? I dont want to involve my husband as he is signing the house over to me in lieu of me making a claim on his pension.
Any advice most welcome.
:)
«13

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You could look at a BT card, but if depends on acceptance criteria. PArt time employment may restrict your options.

    Try an eligibility checker.

    Failing that, cut costs and throw as much as you can at the debt. 24% isn't quite horrendous, but it's certainly worth getting the balance down.
  • Candyapple
    Candyapple Posts: 3,384 Forumite
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    Here is the eligibility checker:

    https://creditcards.moneysavingexpert.com/?balance-transfer&_ga=2.119515721.1326189476.1517825568-1969417388.1516998791
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,595 Ambassador
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    I would try and move at least some of it to a 0% card and throw as much as possible at it to try and reduce it. If you are increasing your hours that will help but don't forget you need to sort your own pension if you will not have access to your DHs when you retire. How old are you?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • fbrander
    fbrander Posts: 65 Forumite
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    I'm 51. I have a final salary teachers pension and a new teachers pension active from April 2015. Due to part time working (children etc) I only have 12 years 314 days service in the final salary pension which works out as-
    Pension £5,692.12 annual
    Lump sum £17,076.35.
    My new pension hasn't accumulated much yet.
    However, in theory I can work for another 16 years.
    :)
  • chelseablue
    chelseablue Posts: 3,303 Forumite
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    Could you use some of the lump sum to pay it off?

    Although I presume you don't get the lump sum until you're 55?
  • eskbanker
    eskbanker Posts: 31,076 Forumite
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    I know it's a broader issue than the one you're actually asking about but surely a debt incurred during marriage, even in just one partner's name, is (in the context of separation or divorce rather than legal liability to the card company) a joint marital debt? Therefore it should be in the pot alongside the marital assets (house, pension, etc) and divided up accordingly....
  • 18cc
    18cc Posts: 2,120 Forumite
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    Could you apply at your bank for a personal loan the interest rate is likely to be much less.
  • nomoneytoday
    nomoneytoday Posts: 4,866 Forumite
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    eskbanker wrote: »
    I know it's a broader issue than the one you're actually asking about but surely a debt incurred during marriage, even in just one partner's name, is (in the context of separation or divorce rather than legal liability to the card company) a joint marital debt? Therefore it should be in the pot alongside the marital assets (house, pension, etc) and divided up accordingly....



    Yes, although since her ExH is giving her the house, I'd say it's probably covered..
  • eskbanker
    eskbanker Posts: 31,076 Forumite
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    nomoneytoday wrote: »
    Yes, although since her ExH is giving her the house, I'd say it's probably covered..
    Quite possibly, but it's not exactly unheard of for a pension fund at retirement age to be significantly more valuable than the family home (I know mine is, even without having reached retirement age), so my point was more about the principle that financial separation should involve divvying up not just assets but liabilities too....
  • Voyager2002
    Voyager2002 Posts: 15,289 Forumite
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    Once you are separated, contact the card company with details of your financial situation; explain that you cannot afford the monthly payments and ask them to freeze the interest and accept an amount that you can afford. They are likely to do this, and a benefit of this solution is that you will be unable to obtain credit and so will not be at risk of falling into debt again.
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