pension lump sum
- Thread starter cyberknight
- Start date
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Could Mrs CK take a lump sum from her pension? It's her debt run up without your knowledge so to my mind she should be fixing the problem not you.
If you do take a lump sum from either of your pensions, are you happy you will have enough to live on when you don't want to/can't work any longer?
If you do take a lump sum from either of your pensions, are you happy you will have enough to live on when you don't want to/can't work any longer?
Kingfisher101
Über Member
Mrs CK needs to be getting in touch with Step change who will work a repayment plan with her. I wouldn't be cashing in my pension, why isn't she taking responsibility?
I never realised this section of Cyclechat didn't have a 'health warning' with it. Financial Advice (what to do with your pension) is a regulated profession just like doctors and lawyers. Debt Advice (what to do about store card debts) is also regulated. Should really be some sort of sticky at the top if the mods would care to consider this.
Professional advice about the debts would be the first place to go rather than the Pension advice. If you want to have the background to how Credit Card companies should treat Mrs CK's issue it's all explained here - all 454 pages of it.
https://www.handbook.fca.org.uk/handbook/CONC/1/?view=chapter
There are many ways to deal with debt which a professional debt advisor can help with. Stepchange mentioned above account for about 1/3rd of the professionals in the UK so are a good place to start. Another advantage of going to a debt advisor is they can organise a "breathing space" moratorium - a 60 day period when the debts/collection of debts are frozen to give the debtor thinking time to come up with a plan. They didn't have it when I was doing advice but its a very good idea.
Above all breath. Debts are personal so shouldn't leak over - apart from joint incomes. Also Creditors are business people. They don't spend a lot of money trying to collect the uncollectable but they do write scary letters which are cheap to produce.
Ex-D.A.
Professional advice about the debts would be the first place to go rather than the Pension advice. If you want to have the background to how Credit Card companies should treat Mrs CK's issue it's all explained here - all 454 pages of it.
https://www.handbook.fca.org.uk/handbook/CONC/1/?view=chapter
There are many ways to deal with debt which a professional debt advisor can help with. Stepchange mentioned above account for about 1/3rd of the professionals in the UK so are a good place to start. Another advantage of going to a debt advisor is they can organise a "breathing space" moratorium - a 60 day period when the debts/collection of debts are frozen to give the debtor thinking time to come up with a plan. They didn't have it when I was doing advice but its a very good idea.
Above all breath. Debts are personal so shouldn't leak over - apart from joint incomes. Also Creditors are business people. They don't spend a lot of money trying to collect the uncollectable but they do write scary letters which are cheap to produce.
Ex-D.A.
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IanSmithCSE
Guru
- Location
- Worcester, Worcestershire
Good morning
Whist I agree with the above about regulated advice it is possible to take it to far and try to categorise statements that do not constitute advice and were never intended to be categorised as advice as advice.
For example an IVA, Individual Volutantary Arrangement, may be appropiate for Mrs CK, if the OP is not familiar with IVAs then it is hardly unreasonable to suggest that he may be interested in acquiring a basic understanding of what they are and suggesting that that was never intended to be regulated advice.
A IVA is a half way house between full repayment and bankruptcy and whilst it is far from ideal and it is not simple it does allow the debtor to pay back less than the total amount due without losing all of their assets. As you might guess from the name it applies only to the individual and the arrangements are fairly one-off and as it is managed by an IVA specialist there is someone very familiar with the industry to take the debtor through the process. In theory it is even possible to set up an IVA without the partner even knowing which says something about the level of risk to shared assets.
I remember quite a few years back The Motley Fool had a Dealing With Debt section and there were a few "experts" there dishing out suggestions such as plan to live on the basics range when supermarkets were selling at a loss to buy market share, the 9p tin of baked beans etc. I was asked to stop posting as I was rocking the boat questioning the postings as it was in my view unrealistic, the givers never had to live with the consequences. For example a poster might be from the CAB, Citizens Advice Bureau and might say that an IVA recorded against a person at an address would not necessarily affect anyone else at that address. Of course this is true as it is an almost meaningless statement and there was never anyone from the lenders posting saying what they really take into account and it didn't matter to the person posting anyway as it didn't affect their lives.
Kind regards
Ian
Whist I agree with the above about regulated advice it is possible to take it to far and try to categorise statements that do not constitute advice and were never intended to be categorised as advice as advice.
For example an IVA, Individual Volutantary Arrangement, may be appropiate for Mrs CK, if the OP is not familiar with IVAs then it is hardly unreasonable to suggest that he may be interested in acquiring a basic understanding of what they are and suggesting that that was never intended to be regulated advice.
A IVA is a half way house between full repayment and bankruptcy and whilst it is far from ideal and it is not simple it does allow the debtor to pay back less than the total amount due without losing all of their assets. As you might guess from the name it applies only to the individual and the arrangements are fairly one-off and as it is managed by an IVA specialist there is someone very familiar with the industry to take the debtor through the process. In theory it is even possible to set up an IVA without the partner even knowing which says something about the level of risk to shared assets.
I remember quite a few years back The Motley Fool had a Dealing With Debt section and there were a few "experts" there dishing out suggestions such as plan to live on the basics range when supermarkets were selling at a loss to buy market share, the 9p tin of baked beans etc. I was asked to stop posting as I was rocking the boat questioning the postings as it was in my view unrealistic, the givers never had to live with the consequences. For example a poster might be from the CAB, Citizens Advice Bureau and might say that an IVA recorded against a person at an address would not necessarily affect anyone else at that address. Of course this is true as it is an almost meaningless statement and there was never anyone from the lenders posting saying what they really take into account and it didn't matter to the person posting anyway as it didn't affect their lives.
Kind regards
Ian
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vickster
Legendary Member
You assume she has one
@cyberknight has not clarified her financial situation beyond the debt.
Certainly getting independent debt related and broader financial advice should come first as said (do Toyota U.K. offer an employee advice service as many large corporates do?)
OP
OP
cyberknight
As long as I breathe, I attack.
- Location
- Land of confusion
You assume she has one
@cyberknight has not clarified her financial situation beyond the debt.
Certainly getting independent debt related and broader financial advice should come first as said (do Toyota U.K. offer an employee advice service as many large corporates do?)
mrs ck isnt old enough to to draw from her pension and it would be very small , in fact she doesnt earn enough to pay tax or NI
Thanks for the clarification.
Jameshow
Veteran
I would suggest talking to her with a counsellor. Get some counselling and support to deal with all the issues marriage, kids, debts etc.
Then you can work out a plan and you'll be stronger together with a plan on how your going to through the present crisis and onto better times.
First talk then get financial advice.
If you don't your heading into the apocalypse.
I say that as a fellow cyclist Dad of four who is in that place, which I won't wish on anybody.
All uphill
Still rolling along
- Location
- Somerset
I'd echo other's comments about proceeding with caution.
If you are taking a chunk of your pension as a 'quick fix' without first together finding a way to prevent the debt situation happening again, then I predict it will happen again.
If you are taking a chunk of your pension as a 'quick fix' without first together finding a way to prevent the debt situation happening again, then I predict it will happen again.
Kingfisher101
Über Member
You say your wife wont listen to you OP, well what about writing her a letter detailing all the points that you have raised here on this board? I'd be devastated if my partner was having such a bad time as you seem to be. She cant just go on burying her head in the sand with all that's going on.
I'll proceed cautiously since this thread is posted in 'Money matters' not the 'Personal' thread. I don't think anything will get solved in the long term by taking a pension lump sum. The right to take a lump sum at age 55 is designed for people who have enough income to retire early not to rob Peter to pay Paul. Yes, the credit card companies are charging 30% and there are ways to freeze the interest payments that don't involve compromising your retirement income.
- Location
- Glasgow
I'm pretty sure - actually certain - that store cards are unsecured loans.
@cyberknight I would definitely NOT touch your pension.
When your wife (not you!) goes to the relevant places that help people in debt, she will be suggested several options, one of them is to go bankrupt.
You are you, she is her, we are in modern Britain, no way you can be held responsible for debts that are not in your name - unless you co-signed the credit agreements, which I don't think you did as you didn't know about the store card debts.
Imo, let her sort it out herself.
Yes, lots of menacing letters will arrive at your address, but, as you said, your wife does not earn enough to repay the loans.
Nothing is going to happen apart from her being blacklisted.
Of course, you could also go to your wife's debt crisis meetings, but don't offer to pay anything!
gbb
Legendary Member
- Location
- Peterborough
I went through this process with Aegon who I have a frozen pot with. They just made sure I could take advice if I thought it neccessary, gave me the options and I nearly signed, but about then the last financial mini crash happened and my pot was hemmoraging money by the thousand so I decided I didn't need the money there and then so would ride it out for better times, hopefully.
It theoretically was a simple ish process so if the cash is useful, it should be relatively simple
It theoretically was a simple ish process so if the cash is useful, it should be relatively simple
