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  • FIRST POST
    • fbrander
    • By fbrander 7th Feb 18, 9:30 AM
    • 65Posts
    • 23Thanks
    fbrander
    Separating after 26 years.
    • #1
    • 7th Feb 18, 9:30 AM
    Separating after 26 years. 7th Feb 18 at 9:30 AM
    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.
Page 1
    • zx81
    • By zx81 7th Feb 18, 9:34 AM
    • 16,386 Posts
    • 17,438 Thanks
    zx81
    • #2
    • 7th Feb 18, 9:34 AM
    • #2
    • 7th Feb 18, 9:34 AM
    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
    • By Candyapple 7th Feb 18, 10:05 AM
    • 2,736 Posts
    • 2,063 Thanks
    Candyapple
    • #3
    • 7th Feb 18, 10:05 AM
    • #3
    • 7th Feb 18, 10:05 AM
    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
    • By enthusiasticsaver 7th Feb 18, 10:15 AM
    • 6,255 Posts
    • 12,393 Thanks
    enthusiasticsaver
    • #4
    • 7th Feb 18, 10:15 AM
    • #4
    • 7th Feb 18, 10:15 AM
    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?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • fbrander
    • By fbrander 7th Feb 18, 11:06 AM
    • 65 Posts
    • 23 Thanks
    fbrander
    • #5
    • 7th Feb 18, 11:06 AM
    • #5
    • 7th Feb 18, 11:06 AM
    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
    • By chelseablue 7th Feb 18, 11:27 AM
    • 2,386 Posts
    • 2,867 Thanks
    chelseablue
    • #6
    • 7th Feb 18, 11:27 AM
    • #6
    • 7th Feb 18, 11:27 AM
    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?
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • eskbanker
    • By eskbanker 7th Feb 18, 1:38 PM
    • 6,820 Posts
    • 7,072 Thanks
    eskbanker
    • #7
    • 7th Feb 18, 1:38 PM
    • #7
    • 7th Feb 18, 1:38 PM
    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
    • By 18cc 7th Feb 18, 2:55 PM
    • 385 Posts
    • 232 Thanks
    18cc
    • #8
    • 7th Feb 18, 2:55 PM
    • #8
    • 7th Feb 18, 2:55 PM
    Could you apply at your bank for a personal loan the interest rate is likely to be much less.
    • nomoneytoday
    • By nomoneytoday 7th Feb 18, 3:30 PM
    • 4,745 Posts
    • 2,875 Thanks
    nomoneytoday
    • #9
    • 7th Feb 18, 3:30 PM
    • #9
    • 7th Feb 18, 3:30 PM
    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....
    Originally posted by eskbanker


    Yes, although since her ExH is giving her the house, I'd say it's probably covered..
    • eskbanker
    • By eskbanker 8th Feb 18, 12:08 AM
    • 6,820 Posts
    • 7,072 Thanks
    eskbanker
    Yes, although since her ExH is giving her the house, I'd say it's probably covered..
    Originally posted by nomoneytoday
    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
    • By Voyager2002 8th Feb 18, 12:43 AM
    • 12,051 Posts
    • 8,194 Thanks
    Voyager2002
    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.
    • Tom99
    • By Tom99 8th Feb 18, 9:30 AM
    • 1,940 Posts
    • 1,280 Thanks
    Tom99
    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....
    Originally posted by eskbanker
    An indexed linked pension at age 60 is probably worth a very minimum of 30x the annual pension so its worth making sure the house/pension split is in the OP's favour by at least half this loan figure.
    • twiglet98
    • By twiglet98 8th Feb 18, 1:34 PM
    • 806 Posts
    • 3,807 Thanks
    twiglet98
    As the credit card debt is due to university fees, who is the student? Are you both his/her parents?
    • fbrander
    • By fbrander 8th Feb 18, 9:40 PM
    • 65 Posts
    • 23 Thanks
    fbrander
    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?
    Originally posted by chelseablue
    At 55 I would only get 80% of my pension. Need to wait until Im 60
    • fbrander
    • By fbrander 8th Feb 18, 9:44 PM
    • 65 Posts
    • 23 Thanks
    fbrander
    An indexed linked pension at age 60 is probably worth a very minimum of 30x the annual pension so its worth making sure the house/pension split is in the OP's favour by at least half this loan figure.
    Originally posted by Tom99
    Im sorry but I dont understand. There is no way my pension will ever be worth 50% of the house value. Also my husband is already retired and some of his lump sum went towards buying the house. He has a decent monthly pension though.
    • fbrander
    • By fbrander 8th Feb 18, 9:46 PM
    • 65 Posts
    • 23 Thanks
    fbrander
    As the credit card debt is due to university fees, who is the student? Are you both his/her parents?
    Originally posted by twiglet98
    Not entirely due to fees. End of the month shortfalls too. Our son was the student.
    • Tom99
    • By Tom99 8th Feb 18, 11:57 PM
    • 1,940 Posts
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    Tom99
    Im sorry but I dont understand. There is no way my pension will ever be worth 50% of the house value. Also my husband is already retired and some of his lump sum went towards buying the house. He has a decent monthly pension though.
    Originally posted by fbrander
    If you both have a pension then you should each have asked for a capital value of those pensions provided by your pension co's. Only by comparing those two figure and seeing how much more your husbands is worth will you know whether you keeping all the house is a fair deal.

    When you come to get your financial consent order, it is just possible the judge might ask about the capital value of each persons pension so that they can see the split is a fair one, particularly if there seems a big difference between the two pensions.
    • fbrander
    • By fbrander 10th Feb 18, 9:42 AM
    • 65 Posts
    • 23 Thanks
    fbrander
    Many thanks for your replies. A couple of very helpful suggestions which I will follow up. We are not going down the road of financial consent orders though as we are trying to keep the split informal.
    I know you will probably think I am mad but splitting things 50/50 would involve selling our house which we dont want to do.
    Also my intention in the future is to sell it and use some of the equity to add to my pension.
    • Tom99
    • By Tom99 10th Feb 18, 10:06 AM
    • 1,940 Posts
    • 1,280 Thanks
    Tom99
    For both your sakes you should get a financial consent order, there is nothing unfriendly about that and you can make the application yourselves.
    If you don't have a financial consent order then either of you can apply for one in the future, say you fall on hard times or win the lottery.
    • MeenaM
    • By MeenaM 10th Feb 18, 10:36 AM
    • 243 Posts
    • 445 Thanks
    MeenaM
    I would also add you should do wills or update your existing ones
    Sealed Pot 11. #199Next1170Barclays Credit Card 4891.20/1257.95- 0% ends April 2019 virgin 0% ends july 2020 4138 3929.89AA Credit Card 860 0- 0% ends Dec 2017 Sainsburys Credit Card 521.27-0 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund 614/1000
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