Western Daily Press (Saturday)
Is a loan or 0% credit card best to pay off debt?
QI’VE built up some debt over Christmas and want to get it cleared as soon as I can. Am I better to go for a 0% credit card or a loan?
ATHERE are pros and cons to either option. If the debt can be repaid over a matter of months then a credit card with a balance transfer offer could be cost effective – as long as you make sure you pay it off within the introductory 0% offer period.
If you fail to repay the debt you will revert to a much higher level of interest at the end of the period which will be higher than if you had taken out a loan.
On the other hand, a personal loan will give you a structured repayment plan and you will know exactly how much you have to pay each month, and when the debt will be repaid.
Q
WE HAVE moved to Spain to live and have mislaid the documents for our life insurance policies which we took out with Lloyds Bank almost 30 years ago. Is there any way we can get hold of these policies?
A
FIRST I would double check if you’re still paying into the policies by checking your bank statements/direct debits – this might give you some additional information to help locate them.
The only way to obtain copies would be to contact Lloyds Bank and ask them to trace your policies.
Q
MY PARTNER and I are both pensioners and we have occupational pensions in addition to our state pensions. Can you advise us what would happen to our pensions if we were to get married?
AMARRYING should have no immediate effect on your occupational or state pensions and you will receive the same level of income during your lifetimes.
However, marrying may affect death benefits associated with both schemes.
For the state pension, this depends on when you reached state pension age – some entitlements may pass to a surviving spouse or civil partner whether or not you are both receiving the full entitlement.
The death benefits associated with your occupational pensions will depend on the type of scheme.
You should ensure you have completed a nomination of beneficiaries form, and it is kept up to date to ensure payments go to your spouse.
Q
I HAVE been left around £30,000 in a relative’s will and I wondered if this will be liable for inheritance or income tax?
ATHE money you receive from the estate of your relative should be paid to you after any inheritance tax (IHT) has been settled and you should not be liable to any IHT on it. There should also not be any income tax to pay. But depending on what you do with the money, you might be liable to income tax on it going forward.