Then bad month comes up, refrigerator goes out, toilet over runs etc. Well even though you might have paid cash for these items, one thing you forgot to pay was credit card bill!

Oh my, it was due on 10th of month, and you did not send off payment till 8th of that month! Woops, payment arrived on 11th.

To your dismay your next month credit card bill no longer has 0% interest; it has jumped to 18.9% or worse, just for being that one day late.

What I am trying to say here is that credit cards not only put your in a financial strain, but all so cause you health problems as stress of being in debt has now gotten to you.

Bad things happen to good people. We don’t intend for this to happen but it does, and sometimes out of our control.

Credit cards can be used for anything these days, and sometimes what life deals us gives us no choice but to use one if we have it. Even for hospital bills, medicines, food and what ever else we need to survive.

I know this for a fact! I am a person due to some very unfortunate circumstances find myself in this position, and it was not planned!

This is why I decided to sit down and write this article, to try to help get word out that credit cards are bad for you financially and health wise.

It does not matter what walk of life you are from, what color you are, where you live, etc., more and more people are filling for bankruptcy everyday, due to having problems with credit cards.

Even worse yet people are loosing there homes and possessions cause they cannot pay there credit card bills. Please don’t get caught up with this disease, due it for you and your family.

If you would like to read more about my history with credit cards, I have set up a cheap little website to better tell you my story.

Interest rates and other economic factors, such as stockmarket growth and interest rates, are much lower now than they were in 1980s and 1990s, so it has now been necessary to reduce projected rates of growth for people taking out a new endowment policy today. As a result, monthly premiums for a new endowment policy today will be higher than they were in previous decades.

How does this affect existing policyholders?

Because actual growth rates have been lower than projected 7.5% rate, an endowment policy taken out in 1980s or 1990s may now not be worth enough at maturity to pay off interest-only mortgage to which it is linked.

Insurance companies are therefore assessing state of people's policies and contacting them to advise what action they should take now to avoid a potential shortfall at end of their mortgage.

How will I be affected?

In most cases, if you took out a with-profits endowment in mid-1980s or earlier, fund should be sufficient at maturity to pay off mortgage. This is because money in your endowment policy will have benefited from higher rates of interest and better stockmarket growth of 1980s.

But, shorter length of time your endowment has been running, greater potential for a shortfall at maturity.

It is impossible to predict exactly how large this shortfall may be, as so much depends on future fund performance between now and time when your endowment matures. Insurance companies are trying to assess issue by looking at how much has been accumulated in your fund so far and making more conservative estimates about future growth.

What can I do now?

There are a number of options:

1. You can increase payments into your existing endowment policy (subject to Inland Revenue rules), or take out additional endowment policy with same insurer or a different insurer. However, you may decide you don't want to be tied into another endowment.

2. You can ask to extend term of your endowment policy, subject to your mortgage lender agreeing. This is probably not a good idea if it means your policy would continue beyond your retirement age.

3. You can set up an additional investment, such as an individual savings account (ISA). An ISA may be cheaper and can offer a wide range of investment choices to suit your attitude to risk.

4. You can ask your mortgage lender to switch part of your mortgage (equivalent to projected shortfall on your endowment) to a repayment mortgage. You can get an idea of costs of new repayment part of your mortgage by using an online mortgage calculator.

5. You can use any other spare lump sum to pay off part of your mortgage. You will need to check first to see if this would make you liable for any early redemption penalties from your lender.

Which is best option?

Everyone's situation is different, and everyone has their own particular preferences. If you are unsure what to do, you should take professional mortgage advice to help you review your options and come to a decision as to what to do.

Should I just cash in my endowment?

This would almost certainly be a mistake. Many endowment policies are structured such that management charges are highest in early years. If you surrender policy early on, amount you get back may well be less than amount you have paid in up until now.

Also, you need to bear in mind that a large proportion of final value of a with profits endowment depends on its terminal bonus. The size of this bonus will not be known until policy matures.

So, best strategy is normally to keep endowment in place. If you need to cut down on your monthly outgoings, you can leave a policy "paid up" (although you may incur penalties for doing this). This means that you do not pay any more money into endowment, but leave it to mature on original date for a lower amount. If you do this, you will need to make sure you still have sufficient life cover to protect your mortgage.

It is possible to sell endowment policies on second-hand endowment market. The amount you get will depend on policy and how long it has left to run. Again, this is an area where you would be well-advised to talk to a professional before taking any action.

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Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.