How can I help My Mother !

DazzaE

Hello everyone,

Been a while.... OK ill get down to business. If you don't already know in a post I did a while back I explained my family came into a bit of money. 100,000 to be pricise. Now i don't think my mother has a dame clue what to do and is going of help from "banks and building society's". I think there trying to make here save the lot and use the interest monthly.

Dunno if this is the right place like for this topic, didnt know where to put it but i know my mum has debt's i.e. house to pay off, car to pay off, overdrath and so so bills but it seems to me she is taking all the advise of the "banks" etc and not listening to me what so eva.

Any one have any idea's on what she should actually do with the money and how i can explain it to her.

p.s

I know she wishes to help me out (am 2,000 overdrawn as a student and also have had my student loan already) by giving me 5000 but puttin it into a high interest account and giving me none now. She is also doing this for the other two kids as well.

Sum 1 give me sum advise !

Daz

malvena_2

Perhaps you should get her a copy of Martins book. It will give her a few ideas.

DazzaE

sounds good idea that thanxs ne thing else from any one ?

CLAPTON

firstly you should suggest she comes here to seek a variety of independant views on how to proceed.
secondly you should encourage her to list all her debts (amount, min monthly payment and APRs), including mortgage situation.
plus her income and her expenses (i.e a SoA)

then its possible to give best advice

DazzaE

well i made her read the investments and savings section... and i think she understood a bit but due to it being the "internet" she understood but i think she just thinks people are trying to rip her off including this site !! I dont think she belives a bank would do that when I know they would !

The second part looks good but would you say pay all debts 1st then help kids to pay debts off or just save the lot ?

I would love martin to ring her up and talk some sense into her 100,000 is such a large amount and is life changing !!!

CLAPTON

yes i would say she should pay all debts off first.

DazzaE

How I can i tell her or show her thats the 1st important thing to do... Thats the problem !!

Pobby

One thing I wouldn`t do is let the bank talk her into some investment.I made that mistake and it took years to get back the money.I think if I was ya Mum I would pay off all debts first.

DazzaE

Well check clears on friday I have tomoz to talk to her and get her to see straight if anyone knows martins number ring him and get him r reply in this one asap LOL...

on a serious note...

I need 2 get it through to her any idea's ?

mjk_2

Maybe with a bit of maths you could show her that the debts are costing X in interest and the money earning Y so in fct it's just wasted money. Get it all down in black and white, then you could also show that if she paid off her debts she could still earn Z from the remaining money. I guess you could also show the total interest that would be payable on the debts if she just leaves them running to term - likely to be a big sum, it's usually shocking how interest accrues.

Try not to over-complicate it though. That's how I'd do it, I always like dealing with actual numbers rather than just the notion of earning interest. (And don't forget to take of tax as well if that's appropriate).

It's kind of a nice problem to have though!!

researcher

Why not suggest going with her to the bank and you could explain her debts to them. I think if there were someone else with her they would be more careful to suggest something suitable for her circumstances.

Also try the Citizens Advice Bureau - they might be able to suggest where she could find good unbiased advice.

Bottom line though, don't worry, she's better off with it in the bank than if she were gambling!