Halifax ultimate rewards account....any experiences?

booklover

Hello everyone

My son aged 23 has just signed up for this account. He is terrible with money. He earns 15k and has as student loan of 4k; he also owe us approx 1.5k.

He plans go to uni again in September to start a photography degree.


Firstly, any advice please re this acc and what acc would you advise for him. He is always into his overdraft.


Many thanks

Fiona

opinions4u

booklover wrote: »

My son aged 23 has just signed up for this account. He is terrible with money. He earns 15k and has as student loan of 4k; he also owe us approx 1.5k.

He plans go to uni again in September to start a photography degree.

Firstly, any advice please re this acc and what acc would you advise for him. He is always into his overdraft.

He is paying £150 for it.

Look at the benefits that he will use from the account (not the ones he would never usually have bought), price up the same products individually elsewhere, and work out if they would cost £150.

http://www.halifax.co.uk/bankaccounts/ultimatereward.asp

If they wouldn't, the account probably isn't worth having. If they would, it's great and saves a lot of shopping around.

For example:

Annual travel insurance £50 (will he travel abroad more than once a year)
£200 average overdraft £19
Standard breakdown cover £40 (does he drive?)
Home emergency cover £40 (might be handy at uni)
Mobile phone insurance £60 (is this covered on your home policy even if he's at uni?)

There's £199. If he needs those covers, it's good value.

booklover

thanks opinions. :T

I will talk to him later. I'm sure he wont listen to me but hopefully will if I show him this.

He lives on his own and only the free o/d would apply to him.

Many thanks again

Fiona

sscott5581

booklover wrote: »

thanks opinions. :T

I will talk to him later. I'm sure he wont listen to me but hopefully will if I show him this.

He lives on his own and only the free o/d would apply to him.

Many thanks again

Fiona

Just so you are aware the interest free o/d is up to £300 only over £300 will be charged at 19.5%.

Steven

Fire_Fox

booklover wrote: »

Hello everyone

My son aged 23 has just signed up for this account. He is terrible with money. He earns 15k and has as student loan of 4k; he also owe us approx 1.5k.

He plans go to uni again in September to start a photography degree.


Firstly, any advice please re this acc and what acc would you advise for him. He is always into his overdraft.

If your son already has a student loan and overdraft how is he intending to fund another course? Presumably he won't be entitled to anything from the Student Loans Company? Don't ask him if he hasn't offered this information, as it will just be viewed as nagging.

Direct him towards this budget planner and especially the snowball button, which will advise the true cost of paying back debts slowly.
http://www.makesenseofcards.com/soacalc.html

Then ask him to present you with a plan of exactly how and when he is going to pay you back and to set up a standing order. I know this sounds harsh, but it would be far better to have a wake-up call from his parents at this stage than getting a CCJ against him later on.

I would also be charging him a modest amount of interest - equivalent to what you are missing by not having the money in a savings account. You can always secretly set the money aside and pay off part of his student loan as a 'reward' for good money management later on.

My parents had to do this to my brother and it was the best thing for him. He still isn't a big saver, but he does have a mortgage that is paid every month and holidays funded out of income rather than cards.