Paying off daughters crdit cards...............

td_007

tonybrod wrote: »

Thanks to all of you that have replied. I agree with all your sentiments and understand where you are coming from. When she first started working having built up some debt at college i took her to her bank as she was getting penalties for banking charges. I advised her and she went to the bank armed with information and has since got herself back on track. She has however still got the £1500 and pays quite high intrest on it. I have no intention of paying her debt off although as she has high interest thought i could assist by clearing the total quicker due to my credit rating. She would then be left with ni cridit cars debt quicker and able to start saving, tonybrod

You have good intentions and the plan is also good. You will be able to transfer her balance to your card if an offer is available. Also, factor in the transfer fees (I am not aware of any available now with no fees). Get a commitment from her that she pays you the minimum monthly due plus any additional payment she can afford and you make this payment back to the card.

On the other hand, if you are confident that she can manage her card properly in future and that she can commit to returning the debt amount in monthly installment to you, then if possible clear her debt yourself. This will avoid giving out more interest money to the CC even if interest on your card will be lower.

tonybrod

Thanks to you all. I have no intention of paying her debt justvtransferring to a new 0% card in my name. She will then pay me the money she normally pays them as a direct debit. Difference would be that my rate would enable her to pay off her debt without being hammered each month for high interest rate. Thanks Tonybrod
ps Her cards are already history.

Trajal

tonybrod wrote: »

Thanks to you all. I have no intention of paying her debt justvtransferring to a new 0% card in my name. She will then pay me the money she normally pays them as a direct debit. Difference would be that my rate would enable her to pay off her debt without being hammered each month for high interest rate. Thanks Tonybrod
ps Her cards are already history.

Splendid plan, and make sure she gets you a damn fine birthday present* to say thanks for being such a stand-up guy!





*preferably not bought on credit!

scott_lithgows

Fathers day coming up soon as well.

Fruit_and_Nut_Case

Trajal wrote: »

*preferably not bought on credit!

:rotfl:.......

cos_2

I'm glad the OP's morals have been corrected by the board.

Why do folk here constantly feel they have to pass judgment?

redpete

cos wrote: »

I'm glad the OP's morals have been corrected by the board.

Why do folk here constantly feel they have to pass judgment?

No-one has commented on the morals of the situation, several have given advice, some of it based on experience. The OP has read the advice in good grace and assured people that he has no intention of falling into the problems that they mention.

Good result all round I'd say.

RobertoMoir

cos wrote: »

I'm glad the OP's morals have been corrected by the board.

Why do folk here constantly feel they have to pass judgment?

I wasn't aware of any moral issue being "corrected" here. Though I would like to comment on the whole "judgement" thing.

The reasons for the comments that have been made are two-fold, and perhaps you might consider these thoughts before being so quick to pass your own judgement (oh irony, why are you so delicious?) on whether or not people here are commenting on the poster's "morals" or raising issues of genuine concern.

Read some of the previous posts on the credit and debt free wannabe boards here and you will see two patterns:

Firstly, that people who don't have to fix their own mistakes don't learn from those mistakes, and can (And often do) fall deeper into debt because of this in the end. This is why it is better for people to fix their own mistakes, imho.

Secondly (and I'm not saying that the poster's daughter is likely to do this) one of the issues that comes up over and over on the boards is family problems caused by money.

In particular when a helpful family member "bails out" another by paying off the debt and expecting the second family member who created the debt to pay them back, then (for whatever reason, some good, some bad) this doesn't happen and the helpful family member gets stuck with the debt. One they may not be able to afford to pay back either, by themselves.

Now I'm not suggesting that tonybrod hasn't thought of the first issue, and I'm certainly not suggesting his daughter is malicious enough to cause the second situation to happen.... but these issues have both happened to enough people (Seriously, check the post archives if you think I'm pulling this out of my ear) that tonybrod should consider/be aware of these issues. I'm sure he already is aware, I certainly get that impression from his replies, but its better to be safe than sorry.

And lastly, as this is a general forum then anyone else reading this post for advice on their own similar situation should also be made aware of these potential issues.

climbgirl

tonybrod wrote: »

Thanks to you all. I have no intention of paying her debt justvtransferring to a new 0% card in my name. She will then pay me the money she normally pays them as a direct debit. Difference would be that my rate would enable her to pay off her debt without being hammered each month for high interest rate. Thanks Tonybrod
ps Her cards are already history.

I'd still be wary of this (although I understand why you want to help her pay it off at the 0% rate). Once the debt in her name is transferred to debt in your name, there's nothing to stop her taking out a new credit card and running up debt again.

Sometimes the high interest rate is an incentive to pay it off quickly. If the debt is 0% interest and from your parents rather than an official organisation, it's a bit easier to skip payments, pay late etc.

My sister ran up £15,000 on credit cards, had it all paid back by her partner's parents with the plan that they would pay them back with no interest each month. The parents wanted to help them out in exactly the same way you do - no high interest payments. Fast forward two years and they have a similar amount back on the cards and have only made a handful of payments to the parents.