DEAR TRICIA

Need some practical financial advice? YOUR MONEY Editor Tricia Phillips and her team can help

Q I seem to be paying a lot for my home insurance. I’ve found a much cheaper deal for better cover. Can I just stop my current cover and take out a new policy? A Yes you can, although you may have to pay a penalty or an administration fee for doing so. Also, you may not get a rebate if you pay annually. Check with your current provider as, if you are close to your renewal date, it might be worth waiting for that to come up. There is usually room for haggling. Q I’m retiring from work at the end of the year. I want to take one of my pensions as a lump sum but I am wondering when I should take it to pay the least tax. Is there a better month to do this? A It all depends on the size of the lump sum after your tax-free cash, and your tax status and marginal rate at the time. This may determine whether you should wait until the new tax year (April 2018) when it may be possible that you could be a non-taxpayer. Q I’m currently struggling a bit with my finances and I am thinking of stopping paying into my workplace pension. Am I able to stop it for a while until I get my finances back on track? A Initially, you only have one month after being automatically enrolled to leave the scheme, but employers are required to reapply the auto-enrolment every three years – which means that you can only actively opt out, or opt back in, once every three years.

Q My mum wants to sign her home over to me and my siblings so it doesn’t get taken to pay for her care should she take ill. Can she do this? A

She can but would it work? Probably not. Doing this to prevent the home having a charge against it to pay for care costs would usually be classed as intentional depravation of assets and it would be brought back into your mum’s estate. It could be a pointless move. Q

I’ve had a bill from a mobile phone company I haven’t got a contract with. They are demanding I pay it or

they will put a default on my credit rating. What should I do?

A

Don’t panic. If there is fraudulent activity in your name you cannot be held responsible for any debt, and default notices on your credit score/ report will be removed once this is proved. Contact the mobile phone firm and they will advise you what to do. You should also check your credit report as there may be other signs crooks have accessed your personal information. The three main credit report agencies are Equifax, Experian and Callcredit.