Selling your endowment policy could 'help to get your finances back on track'

Britons who are concerned about their finances should get on top of them as soon as possible, rather than waiting until it is too late, it has been advised.

Identifying where expenditure can be reined in during the current economic downturn could be a wise step for individuals to take. This could include stopping spending on credit cards, paying off high-interest personal loans or leaving store cards alone when tempted by the initial savings.

A spokesperson for aap - the UK's biggest buyer of endowment policies - said some of its customers had sold their underachieving endowment policies to organise their family debt management commitments.

Moneywise noted that budgeting on a monthly basis could be ideal for many Britons who get paid once every four weeks. As well as regular financial commitments - such as monthly debt repayments - people should take into account unexpected expenditure which could leave a dent in their finances.

"This exercise will, for many of us, turn the spotlight on one major problem - a shortage of cash," the resource stated.

"Next, consider ways of reducing your expenditure on essentials and non-essentials. Take a look at some simple steps that could help boost your cash levels without forcing you to cut back on anything," Moneywise added.

Britons who are struggling with their debt and do not want to fall back on essential financial commitments such as bills and rent may have started to address how they can obtain extra cash.

Rather than falling into further debt, people may want to clear the money they owe with a lump sum of cash, allowing them to stay afloat during the credit crunch.

Individuals who have already considered selling their unwanted endowment policies may not realise that selling a policy on the secondary market is another option available to them.

A spokesperson from aap - a company which specialises in buying endowment policies - added that if the firm decides to make an offer to buy an endowment, it will always pay more than the surrender value offered by the insurance company.


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