Men may decide to sell their endowment policies to get out of debt

Publication date | 16/03/2010

Men appear to carry more debt on their shoulders than women, according to a new report.

The findings from the Consumer Credit Counselling Service (CCCS) survey revealed that of those people who the charity recommended IVAs to last year, 55.4 per cent were men.

Furthermore, of its clients who it suggested bankruptcy to, 51.4 per cent were male.

Chris Radford, chief executive officer of aap, the UK's biggest buyer of endowment policies, said some of its customers with high levels of debt who wanted to avoid acquiring an IVA or bankruptcy, had decided to sell their underachieving endowment policies to raise the money needed to clear debt.

More men than women struggling with large debts

Men are more likely to become insolvent than women. However, the potential consequences of going bankrupt may mean males will want to find the money to clear what they owe.

Being declared bankrupt can result in people being barred from certain professions, such as accountancy, while a home may be repossessed so it can be sold to repay creditors.

Whilst the consequences of IVAs are less severe, undertaking one still leaves a mark against a person's name on their credit file for approximately five years.

Raising the money required to clear debt by other means - such as selling endowment policies - could have already been researched by many men.

The CCCS survey also found that the average couple owe just over £30,000, while single men are almost £20,000 in debt.

Commenting on the debt concerns of Britons, CCCS spokeswoman Frances Walker stated: "This may be the one equality which women may not want to aspire to. Whatever sex you are, I would urge anyone worried about their debt to seek help as soon as possible."

Questions may have been asked about selling endowment policies

Mr Radford, from aap, said some of its customers concerned about their large debts had discovered that selling their unwanted endowment policies could raise the money needed to clear what they owe.

He added that should aap make an offer to purchase an endowment policy, it will always pay more than the surrender value offered by the insurance company.

Reasons to sell your endowment policy