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Debt Advice - Pension
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"No, your pension is more important than you could ever imagine" Maybe so. I’ll just keep plugging away! | |||
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"Pensions are the one of the most important savings you can do because of the compounding interest. Pick up a second job or side hustle and pay down your debt. Sell everything you don’t need on Vinted and eBay. Eat value food for a few months instead of branded stuff. Don’t get takeaways. That kind of thing." Yes I do agree. I need to sort my outgoings 1st and I will try and pick up some work on the side. | |||
"As a person with no pension I’d strongly advise you keep going with it for your retirement. I say no pension but I got a letter the other day saying I’m going to get 8€ a month when I retire from the French government wahoo. Think to the future. T" Thanks for your input! Is the French pension poor? | |||
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"Do get advice but like most people id advise against it, especially as you get tax relief on it and you wouldn’t see the whole amount you pay out back in your pay packet "Yes that’s my initial thought also. This is why it’s good to use here as a sounding board! | |||
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"OP, why not try to consolidated the debt( interest free) usually cam end up paying a lower amount monthly over a longer term but more affordable. Maybe withdraw a weekly/monthly amount to do your food shopping/spend and try not to use your cards. Don't lower your pension." I think I just need to tighten my belt a wee bit and get some debt gone! Honestly I’m not in a bad bad shape but it could be better! | |||
"A few years ago when I was struggling I went to stepchange.org. They are brilliant and they won’t judge you either. You’re probably feeling bad about it anyway and they will make you feel a whole lot better because they get it. It worked for Me. Good luck mate. " Thanks I’ll defo look into that | |||
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"Great advice above.... could you consider renting a room out in your house? That would bring you an extra £200 a month perhaps? Also beans on toast is both nutritious and cheap... And if you buy a yellow stickered sliced loaf, you can keep it in the freezer and just toast a couple of pieces as needed. Super cheap! " in Devon you could rent a room for £500 a month  | |||
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"Great advice above.... could you consider renting a room out in your house? That would bring you an extra £200 a month perhaps? Also beans on toast is both nutritious and cheap... And if you buy a yellow stickered sliced loaf, you can keep it in the freezer and just toast a couple of pieces as needed. Super cheap! in Devon you could rent a room for £500 a month "Wowee 
*seriously considers clearing out the junk room!! * | |||
"Hey Folks, Like us all I’ve a bit of debt hanging over me. It’s manageable but annoying. I work in public sector and get a decent employer contribution. Should I reduce their contribution and receive the money instead to work hard on my debt? " I'm not sure there is any way that you could receive that money instead of it going into your pension, and if you could, it would become liable for tax & national insurance... so reducing its value considerably. Cal | |||
"Hey Folks, Like us all I’ve a bit of debt hanging over me. It’s manageable but annoying. I work in public sector and get a decent employer contribution. Should I reduce their contribution and receive the money instead to work hard on my debt? " Depends on the interest rates on your debts , currently it still pays to be in mortgage debt for most people as long as you can trust yourself to save. It’s unlikely other debts are below 5% APR.if it’s isn’t 1/ clear your debts 2/ save for pensions 3/ save for other stuff | |||
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"Hey Folks, Like us all I’ve a bit of debt hanging over me. It’s manageable but annoying. I work in public sector and get a decent employer contribution. Should I reduce their contribution and receive the money instead to work hard on my debt? " Almost certainly no. Each pound you put in gets you free money from your employer and also does not attract tax. Depending on your deal, you might find that if you sacrifice £10, the employer puts in £25 and had you taken that £10, you would see only £6-8 after tax. So your choice might be between £8 cash now or £30+interest/earnings in the future. (Which may be subject to tax, but almost certainly less than you're currently paying, if done correctly) Those numbers could change depending on your specific matching criteria and tax bracket, but government pensions are extremely generous and the numbers are probably in the right ballpark. Now, if you have no choice but to pay 30% interest on that debt because you have no other recourse to a cheaper consolidation loan/0% credit card, then you should pay off the debt. Same goes if a loan shark is about to break your legs. However, if there's any way you can service that debt cheaply, keep the pension. You can oven negotiate interest just by calling up. Lenders would rather accept a tiny amount and freeze interest if they believe that the alternative is not getting paid. There's also the IVA (think twice before doing this) and bankruptcy - Which is a great option if you have (a) almost no assets, (B) no way to ever pay of the debt and (c) it will not affect your job or employability (i.e. probably not for you). Without knowing details, it's hard to give meaningful advice, but reducing the pension contribution leaves a heap of free money on the table, which is a crying shame and should be avoided at all costs. | |||
" I think I just need to tighten my belt a wee bit and get some debt gone! " Maybe don't book an all inclusive family holiday to Turkey ? | |||
" I think I just need to tighten my belt a wee bit and get some debt gone! Maybe don't book an all inclusive family holiday to Turkey ?" Grow up | |||
"One thing I do know is that once you're retired you'll never regret any money you put in to a pension. The state pension is not enough to live on even in frugal comfort " I was taking with friends about this and about the book Die With Zero. Our view is most people we know save too much and die with loads, property , business assets, cash etc passed onto family, at the cost of…… Valuable time with their loved ones doing the things that are truly their passions. Save so you are not a burden to you family and the state, beyond that live for now. You do your kids no favours missing out on them now so they can have some extra cash when you are dead | |||
"Have a search for interest free credit cards, do a balance transfer Cut the other card up, dont use the new one for purchases If you cant buy outright, dont buy at all As Martin lewis said, ask your self two questions Can i afford it Do i really need it I get my state pension next month, a magnificent £712/ month, if it wasnt for my works pension I’d be in the shit "Yet profile claims uou are 52 Wish I could get my pension from state in my 50s (I.e now) | |||
"Have a search for interest free credit cards, do a balance transfer Cut the other card up, dont use the new one for purchases If you cant buy outright, dont buy at all As Martin lewis said, ask your self two questions Can i afford it Do i really need it I get my state pension next month, a magnificent £712/ month, if it wasnt for my works pension I’d be in the shit
Yet profile claims uou are 52
Wish I could get my pension from state in my 50s (I.e now)"Oh, don't be so pedantic. It's only roughly 15 years difference.  | |||
"No, your pension is more important than you could ever imagine" Seconded | |||
"Have a search for interest free credit cards, do a balance transfer Cut the other card up, dont use the new one for purchases If you cant buy outright, dont buy at all As Martin lewis said, ask your self two questions Can i afford it Do i really need it I get my state pension next month, a magnificent £712/ month, if it wasnt for my works pension I’d be in the shit
Yet profile claims uou are 52
Wish I could get my pension from state in my 50s (I.e now)"It wouldn't be anything like £712pmth if you did 
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" I think I just need to tighten my belt a wee bit and get some debt gone! Maybe don't book an all inclusive family holiday to Turkey ? Grow up " It's a fair point really! If you're in debt, asking for debt advice & considering opting out of your pension, is a holiday the best use of the money that you "do" have? Really choosing not to spend money you can't afford on something you don't need (and nobody "NEEDS" a holiday) is the more "grown up" option. Cal | |||
"Have a search for interest free credit cards, do a balance transfer Cut the other card up, dont use the new one for purchases If you cant buy outright, dont buy at all As Martin lewis said, ask your self two questions Can i afford it Do i really need it I get my state pension next month, a magnificent £712/ month, if it wasnt for my works pension I’d be in the shit
Yet profile claims uou are 52
Wish I could get my pension from state in my 50s (I.e now)
Oh, don't be so pedantic. It's only roughly 15 years difference. "Yeah maybe I’ll edit my profile and claim to be 40 now lol  | |||
"Have a search for interest free credit cards, do a balance transfer Cut the other card up, dont use the new one for purchases If you cant buy outright, dont buy at all As Martin lewis said, ask your self two questions Can i afford it Do i really need it I get my state pension next month, a magnificent £712/ month, if it wasnt for my works pension I’d be in the shit
Yet profile claims uou are 52
Wish I could get my pension from state in my 50s (I.e now)
Oh, don't be so pedantic. It's only roughly 15 years difference.
Yeah maybe I’ll edit my profile and claim to be 40 now lol "How fabulous. I’m 23 again! That means my ankle isn’t fucked my joints don’t creak when I get up from a chair! | |||
"Have a search for interest free credit cards, do a balance transfer Cut the other card up, dont use the new one for purchases If you cant buy outright, dont buy at all As Martin lewis said, ask your self two questions Can i afford it Do i really need it I get my state pension next month, a magnificent £712/ month, if it wasnt for my works pension I’d be in the shit
Yet profile claims uou are 52
Wish I could get my pension from state in my 50s (I.e now)
Oh, don't be so pedantic. It's only roughly 15 years difference.
Yeah maybe I’ll edit my profile and claim to be 40 now lol " | |||
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"Have a search for interest free credit cards, do a balance transfer Cut the other card up, dont use the new one for purchases If you cant buy outright, dont buy at all As Martin lewis said, ask your self two questions Can i afford it Do i really need it I get my state pension next month, a magnificent £712/ month, if it wasnt for my works pension I’d be in the shit
Yet profile claims uou are 52
Wish I could get my pension from state in my 50s (I.e now)
Oh, don't be so pedantic. It's only roughly 15 years difference.
Yeah maybe I’ll edit my profile and claim to be 40 now lol "The earliest age you can apply for a state pension is 66 quite how you can get one at the age of 52 is a mystery. State pensions are not paid monthly but every 4 weeks giving you 13 payments per annum, | |||
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