Should I use pension lump sum to try and pay off DMP ie try for settlement?

[SuzyV]

Hi Everyone,

 

Newbie here who found this website whilst googling for information on F & F debt settlement offers.

I'm looking for some advice please, on our next course of action.

 

My husband and I jointly have 5 debtors, one of whom is our son.

 

 

We used some of his inheritance money to try and pay off credit card debts when I was made redundant, something we are both deeply ashamed to admit.

 

In 2010 we sought the help of the CAB who arranged a debt management plan with our debtors.

We have been paying minimal amounts ever since as we have virtually no disposable income.

 

This what we currently owe:-

 

Tesco credit card debt 2994

Natwest credit card debt 11,811

M & S card 6099

Store card 900 (This account has been sold on to Moorcroft and was the smallest sum!!)

Son 9000

 

We are paying them a total of £25 per month (between them all, excluding son)

and as my husband and I are 56 and 57,

I don't see our financial position improving substantially any time soon.

 

 

We have substantial mortgage shortfall on various endowment policies and this needs to become a priority for us, if it's ever to get paid off!!

(We re-mortgaged 3 times to pay off credit card debts over the years).

 

due to the changes in the law I can now access a pension lump sum of about £10k

and was going to try for a F & F settlement of our debts with this sum just so that we don't have this hanging over our heads right into retirement.

 

 

I don't see that we will ever be able to pay off the full amounts owed to the credit card companies.

 

 

Our son has agreed not to press us for any amount now,

he knows we have no way of getting more money at present.

 

 

We will eventually inherit a lump sum from our mother in law and will pay him then, but she's currently in rude health

 

So, should I try and use my pension to pay off these debtors,

and is it likely that they would accept such a small percentage of their total debt?

 

We are not worried about what's on our credit record now as it must be totally trashed

and we never want another credit card anyway.

 

Also as we are homeowners is it likely that they will try and get money from us if we ever sell the house (which we don't want to do)?

 

Many thanks for any advice.

[dx100uk]

short answer is NO NEVER.

 

 

dx

[dx100uk]

if you took the lump sum

is there no penalty like 25% tax you'll be clobbered

you are under the correct age to take it

and I'm sure you'll be penalised

 

 

like you have in the past [wrongly?]

remortgaging to pay off credit card debts

and 3 times, is a really bad idea

you pay far more in the long run, that what is owed on the cards,

 

 

never mind mistake made.

 

 

you say one is with a DCA

so i'dsend them A CCA request.

 

 

how old are the other debts?

when did you take them out.

 

 

and have you ever looked at PPI reclaiming

and PENALTY charge reclaiming?

 

 

dx

[SuzyV]

Thanks for the reply.

 

Will send CCA request but as I have been paying this debt off for the last 5 years surely I still have to pay (it is mine?!).

 

The other credit cards are from a long time ago although I don't have any dates/paperwork to prove it.

 

We never paid any insurance on our cards, so no PPI to claim as far as I'm aware.

 

Really, we hate living with the stress of having the debts hanging over us all the time, I would rather sacrifice my pension if it means we can get rid of them, and be free from constantly having to justify why we can't pay more. They seem to ring every 6 months for a review of our finances.

[dx100uk]

you are under no legal obligation to talk to anyone on the phone regarding your debts......

 

 

writing only

put the phone down.

 

 

I would suspect you've paid more than you borrowed on most anyway if they are that old.

 

 

paying a debt ok ack's it in relation to statute barring

but,

if they don't hold enforceable paperwork anymore..they can go whistle.

 

 

I think its about time you took control of your money

not let all your creditors dictate what you do.

 

 

the only stress you have is you letting them control you.

 

 

reverse it.

 

 

take control.

 

 

I pers would not sacrifice your future financial security by paying even more money to the leechers

it seriously worries me that you have already remortgaged 3 times to feed them.

 

 

time for an SAR to each one

get all the statements and nail them all

 

 

as for you son

he should have been you priority

the rest should have been dropped to

 

 

I really do hope all the interest and penalty charges were stopped years and years ago.

 

 

dx

[SuzyV]

Hi again,

 

Yes all the interest was stopped in 2010. Sorry to sound really stupid but what do I do with all that information I get from them?

[dx100uk]

good on that then...

 

 

are you aware if these people have been levying penalties like £12 for this and that

on each of your debt

[consumer wise= forget your son one for now he should have been paid first...]

 

 

you are getting better than an annual statement from everyone are you not?

 

 

dx

[SuzyV]

For the three credit card debts I am still getting monthly statements, for the store card that was sold to Moorcraft I haven't seen a statement for over a year, but I know it's not paid off yet.

[dx100uk]

well certainly cca request to moorcrap

 

 

dx