Help my daughter please?

DVardysShadow

downshifted wrote: »

Hi. Downshifted here. Thanks for all your comments.

Most of the £5k is locked away for a couple more years - so using it to pay the debts now isn't really an option at present, however sensible it is. ...

There could be a withdrawal penalty and it could still make sense to withdraw it.

xyellowx

wether the 5k gets used or not you need to changed your lifestyle and become a regular on here for a while you will soon learn
the best way to get out of a mess is limit what your spending and put non esentials on hold for a while

however if you dont change your lifestyle it wont matter what advice you get on here

[Deleted User]

I still feel the Lodger should pay more, My boyfriend lodges with someone he pays for the room, half the Council Tax and then they half the gas electric and water, buy there own food but have a small kitty for things like milk bread tea coffee loo rolls. My BF is a chef and works late and the other guy is a teacher who leaves at 6.00am and is home for 4pm so they don't eat together as they are rarely in the house together.

annie-c

downshifted wrote: »

Most of the £5k is locked away for a couple more years - so using it to pay the debts now isn't really an option at present, however sensible it is. However, we also think she needs to learn to manage these debts herself and understand how to live within her own income - feel the pain as someone said.

It is really nice that your daughter has support to get through her problems.

The £5K does seem to be a way to save money on interest payments though and I am wondering what are the conditions around her accessing the £5K and who is 'we' though when you talk about her needing to learn and feel the pain? Is it entirely her decision or is it you the parents wanting that?

If the money is in a bank or other account in her name, then she might do well to calculate whether the cost of penalty charges for withdrawing that money would be worthwhile in terms of the interest she will save if she can pay off some of her debt. Like others have said, it would make sense to keep, say £1K for an emergency fund, but otherwise to throw the funds at the higherst APR debts. In honour of her gran, she can always set up a standing order to 'repay' the fund as a first priority once she is free of high interest debt. She could even 'repay' the account with interest, at the rate she is saving on the cards - which would mean that gran's legacy would grow over the medium-term.

That £5K, if used wisely, could help her to earn money rather than paying more interest than necessary to the banks - and incentivise her to see, in cash terms, the value of living without debt.

downshifted wrote: »

We are really proud of her for tackling this - she has recently survived another round of redundancies and also stopped smoking in the last six months - she is a great daughter and deserves your encouragement.

I hope that the posts on here are seen as encouragement - the majority of posters are trying to help her to save money by using the assets she has got. I would encourage her to take the sound advice given here rather than to go through an experience of 'feeling the pain' , from which the banks possibly stand to gain more than your daughter.