daughter debt

popeye6

my Daughter has come clean and disclosed to me her £7500 credit card debt !!!!!!:mad: and asked for advice . I am reluctant to lump in 7500 and loose 4-5 years int @5%. On investigation a tesco loan seems a better bet .

she ends up paying some interest and i dont loose mine .
Any thoughts ?

CLAPTON

Before rushing in about shifting the debt round, she needs to consider how she came to be in debt and has she now addressed these issues.

Does she have a budget and does she stick to it. Otherwise, if she consolidates the debt but continues to spend, within a year of so she will have a large loan and large CC debts too.

You should suggest she logs onto the debt free wanabe board and posts up details of her situation (income/spending and full debt details ) and get some advice there.

ICan'tStandIt

It's her debt, so let her deal with it unless she is in danger of becoming homeless as a result.

Can't she sell some of the stuff she has bought ?

Paying back a debt(s) and having to go without results in learning a harsh lesson, like I had to learn. Getting someone else to bail you out teaches you nothing.

Morn

ICan'tStandIt wrote: »

It's her debt, so let her deal with it unless she is in danger of becoming homeless as a result.

Can't she sell some of the stuff she has bought ?

Paying back a debt(s) and having to go without results in learning a harsh lesson, like I had to learn. Getting someone else to bail you out teaches you nothing.

I have to agree!!

Although I am in a bit of debt at the moment (just graduated) I have been as careful as could be throughout and I want to remove any debt I have within the next 6-7 months.

If she does not want to get out of debt (and by want I mean understand why she needs to get out of debt), a family hand out will do no good.

If I asked my parents for a bailout I know that they would pay, however I would pay with my pride and I simply am not willing to do it.

Hope it gets sorted out.

poppy_f1

my parents bailed me out of debt about 10 years ago, it didnt teach me anything tbh

tictax

Don't even think about it!

If your daughter is old enought to apply for credit and spend the money then she is old enough to pay it back.

However, do support her through this - help her in other ways but don't give her the money as otherwise she won't learn from this experience. Also, if she still lives at home make her still may her usual money for her keep to make her realise how some things won't go away. A valuable lesson for when she sets up home on her own. I know that this is something that my parents did and I will always be thankful that they did that.

Amy83

I'm going to buck the trend. Yes, she needs to learn that you're not just going to bail her out when she gets in trouble..but to leave her to it until she's 'nearly homeless because of it' is a bit far fetched in my opinion. She's come to her mum for help and you should help, but that doesn't have to mean paying it off for her.

If she ends up with a bad credit rating, (or worse) morgage providers won't touch her with a bargepole, and if she already has a morgage she may start the slippery slope of robbing peter to pay paul and end up in an altogether more dangerous situation.

Have you/she looked into transfering balances elsewhere? A7k debt moved around between 0% for Xmonths, or onto a low Life Of Balance interest rate would be much better.


A loan (in my opinion) wouldn't be the best way to go, they tend to be not as competitive for the interest rates, and many charge fees if you decide to settle early. (also, is there the worry that if she has 'clear' credit cards she may spend on them again?)

Hope she can sort it out

ChasingButterflies

Hi,

I am in a similar situation (except it is my Mum) but I guess the same applies.

My first thoughts were to clear it for her... but then reality dawned. For as long as I can remember Mum has gone through this same cycle. With DH and out little people to think about using our savings to pay her debts would leave us without the "cushion" of knowing that there was spare funds there should we need it.

So I sorted through all of her paperwork (she has multiple creditors) priortised the debts (and since she is living here just now :rolleyes:) I am still having issues with her actually doing any of this work herself... i.e. knowing exactly how much she owes to who, how much she can afford to pay them and then acutally getting in contact with them. I have tried directing her to this site to sort herself out many times. Looking and posting on here would give her the tools to be able to do something positive with her situation. So I would suggest introducing your daughter to the debt free wannabe board. She will have the support of people who are in exactly the same situation and working her way out of it herself should make her think twice about doing the same again (although not always!) so I would agree with what others have said - she needs to address how she built up the debt in the first place.

I guess what I am saying is that don't make it too easy for her, if she has no food in her cupboards then help out, but she needs to be the one who takes on an extra job/sells what she doens't need on ebay/gets up at 5am to do a carboot sale... and then she will have the satisfaction of being able to pay off an extra amount off her debt.

Sorry if that has turned into a bit of a vent... the softly,softly approach isn't working here - you can lead a horse to water :rolleyes:

If she posted her soa on the debtfree wannabe board there would be lots of people who would be able to help... Getting a loan or 0% card would depend on how she has managed her debt so far i.e. has she defaulted? After we needed to move from a flat to a bigger house we ran up about £5k we found a 0% card to trasfer to I ebayed like mad (which was pretty easy with 2 small kids that constantly grew out of stuff!) I drew up a budget that left us with £100pcm to buy nappies/food/formula/clothes (I cried when I figured this out! I wish I had know about this site back then...) we got there though and I am sure you daughter will too. She has taken the 1st step in admitting she is in a pickle.

Good luck to you both.