Rate my financial situation

I’m another jumping in to say start the pension now. As someone just reaching pension age, and in a number of pension focussed groups, it’s awful reading about people who worked hard all their lives, but neglected starting a pension.

It really is a case of the sooner, the better, even if you do start with a small amount.

Other than that, do you have any scope to rent out one room for a year or two? It could really help with your plans to knock down that debt.

Absolutely this. You mention company pension scheme. Does that mean you are effectively missing out on “free money” by not joining now?

find a way to join now please.

So how much savings do you have if you are able to save a few hundred each month?

Get a sipp open now with 100 and leave it .
When you can start to add bits here and there
25 a month now can make a big difference with the time lapse.

You need to be aggressive about seeking out money. Remember every pay rise you don't get now is not just you losing that money for that year. If you fail to get say 1K this year that will lower your salary by that for the rest of your working life so 65-33=32x whatever you fail to get.

Your debt position does not really look job re your job security tradeoff. It's people who are confident of their debt position that can negotiate most aggressively as losing their job has less fear/impact.

Always remember that storing money in say a savings account gives you more flexibility than paying off a mortgage or putting in a pension, even if it costs you more in terms of interest.

Because your ltv is small in terms of mortgage can you consolidate your debt onto the mortgage and reduce interest payments that way ?

It's not advice, but I have seen others paying sooo much into their pensions, only to drop down dead in their 50s and 60s. There is no guarantee of retirement and there has to be a balance. I think paying off debt should come first, in my opinion.

Is your strong housing position as a result of inheritance?

I’d be careful not to let that make you think you’re in ana amazing position - £12k on credit cards suggest you are living beyond your means.

This is bad advice unless your parents are very wealthy and you know you will inherit. The median inheritance is very low and care fees if needed can eat into them.

There is likely to be a retirement crisis in the future as most people don’t prioritise this enough until it’s too late.

Employer contributions and the tax relief are ‘free money’ which you need to take advantage.

As a single income mortgager payer I'd be concerned about that amount of debt and no savings. Really concerned.
If you earn £42k and have a £500 a month mortgage there's no reason not to be saving or contributing to a pension.

To me it’s a 5/10, ok you’re doing good mortgage wise, but the debt and lack of savings outweighs it a bit for me. Somewhat along the lines of asset rich…cash poor situation. I would feel uneasy about that. Will your pay increase, do you have room for promotion etc?

You're probably better off waiting until you earn 50k+ or whatever the higher rate tax is at the moment for pension contributions and contributing more then as you will get 40% relief. If you are on 42K now you are only a promotion/couple of pay rises away from that.

A lot of people stuff £stupid into pensions only to never be able to take advantage of it.

Maybe 3 on your scale? Having no pension, no savings/emergency fund and £14K debt sounds really scary, but you do have decent equity in your home so it isn't all bad.

I would feel stressed in your financial situation, but it does sound like you have plans to improve it. What is the interest on your loan? Is it above or below what your money could earn in savings?

If you're earning £42K a year that's approx £2.8K a month? If your mortgage is only £500pcm, where is the rest of your money going? Unless you've missed something major you could likely be saving £1000 a month towards your goals.

I’m not sure what the average is but I think you are doing OK. I would focus on the following in this order.

1/check what employer pension contributions you can get if you join works pension now and put in as much as you can to start benefiting from that and tax relief .
2/build up emergency fund to 3 months of spending whilst cc is 0%
3/ pay off cc and loan
4/ split monthly savings between building emergency fund to 6months and pension/long term savings. Look for the most tax efficient options.

You’re doing very well with your mortgage and equity, but not at all good with debt, savings and pension. Start your pension now, it’s much better to start earlier even if it’s just small contributions at first.

i wouldn’t be panicked but I wouldn’t say you’re living the high life- the debt worries me as it indicates that day to day life and things that crop up aren’t manageable. Any hope of increasing your salary?

See, I disagree with prioritising a workplace pension to the detriment of today. Most people do end up inheriting something (not guaranteed, but most do), and OP will have few outgoings in her 70s, unless she wants to let rip.

I think if you’re 35 you’re doing great with regards to mortgage. Get that debt paid off - you don’t and shouldn’t be in debt with a good income and a low mortgage. Then build up your saving and you’ll be so pleased with yourself. You could also think about over paying your mortgage. How many years do you have left on it…

Join the pension fund, clear debt alongside that. Otherwise crack on.