'A 'cut the baby in half' decision – their life, but my choice' blog discussion

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This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.




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  • Mojisola
    Mojisola Posts: 35,559 Forumite
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    I heard your reply this morning. Quick thinking when the problem was thrown at you without warning.

    If I was in this couple's position, I would put £500 towards paying off the loans and save £100 in another account. This would give some flexibility for big events - holidays, replacing appliances, etc. If there was no need to spend the money, then it could be used to pay a lump sum off any debts.
  • Errata
    Errata Posts: 38,230 Forumite
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    It's a great pity that delayed gratification isn't taught in schools. It would be a lesson worth sitting through for the 'Because I'm worth it' generation.
    The couple in question have a significant problem if they're unable to understand that having debts to pay off and having no savings cushion makes them think spending a significant amount of money on a holiday is a viable proposition.
    .................:)....I'm smiling because I have no idea what's going on ...:)
  • Million_Percent
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    Mojisola wrote: »
    I heard your reply this morning. Quick thinking when the problem was thrown at you without warning.

    If I was in this couple's position, I would put £500 towards paying off the loans and save £100 in another account. This would give some flexibility for big events - holidays, replacing appliances, etc. If there was no need to spend the money, then it could be used to pay a lump sum off any debts.

    That was my answer too.
  • tgroom57
    tgroom57 Posts: 1,431 Forumite
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    Great answer. I agree with it in principle and totally agree it needed to be short and easy to explain on air.

    I would work on the details a little though (I wonder if they read this?)
    Just paying the same amount -£600 saved from childcare - to pay off debts is going to feel like there's no improvement.
    I'd pay £550 off debts each month and have the £50 as a 'happy' fund - meal out, day trip, something like that. A small extravagance to take the edge off waiting 6 months for a holiday.

    For the holiday, I would look at using less than £600. Maybe a big tent and go camping? It is all an adventure - you don't have to spend your holidays in foreign hotels. My kids liked camping so much they bought a big one themselves. (We 3 went in a 2 man tent to try out)
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    While I'm not normally in favour of spending money, if it were us I'd probably agree to the holiday. We often spend the first month's pay increase each year before putting it to a sensible use in future months. You've never had this money spare before, so waiting 6 months to get used to not having it doesn't really make sense.

    But it depends on what interest they're paying on their debts and how much they owe. Lets say it's a credit card debt at 25% APR. Lets say by paying £600 a month they can pay off their debts in a year.
    The choice is, then, a £600 holiday now (and no holiday next year) or a £750 holiday in a year's time.
    I'd say they are allowed to take the holiday now, but if on hearing this the wife chooses the better holiday next year then that's fine.

    If, on the other hand, they're into the realms of unauthorised overdraft charges, payday loans or worse then it would be crazy to have the holiday now.
  • Sue-UU
    Sue-UU Posts: 9,565 Forumite
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    I'm still at the part of wishing I could think as fast as that, well done Martin! An excellent answer which they'll all benefit from.

    Either your idea or Mojisola's would be ideal and would be facing up to the responsibilities of debt repayment as well as a 'sweetie for being so good'. I think it's all helped me to look at things in a better way in future - but - as Errata wisely states and I know Martin would agree with..

    "It's a great pity that delayed gratification isn't taught in schools. It would be a lesson worth sitting through for the 'Because I'm worth it' generation."

    Much like we should all be saving up to buy something, but it's possible to cut a few corners to get it sooner.

    BTW Martin, where is the petition about "making financial education a compulsory part of education" to be found? I've searched on the e-petion site and can't see it.

    Many thanks for so much.

    Sue
    Sealed Pot Challenge 001 My Totals = 08 = £163.95 09 = £315.78 10 = £518.80 11 = £481.87 12 = £694.53 13 = £1200.20! 14 = £881 15 = £839.21 16 = £870.48 17 = £871.52 18 = £800.00 19 = £851.022021=£820.26[/SizeGrand Totals of all members (2008 uncounted) 2009 = £32.154.32! 2010 = £37.581.47! 2011 = £42.474.34! 2012 = £49.759.46! 2013 = £50.642.78! 2014 = £61.367.88!! 2015 = £52.852.06! 2016 = £52, 002.40!! 2017 = £50,456.23!! 2018 = £47, 815.88! 2019 = £38.538.37!!!! :j
  • antonia1
    antonia1 Posts: 596 Forumite
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    Errata wrote: »
    It's a great pity that delayed gratification isn't taught in schools. It would be a lesson worth sitting through for the 'Because I'm worth it' generation.

    While I agree in principle, perhaps it would be better if this sort of self-management was taught by parents, rather than expecting state-funded schools to take over yet more basic parenting skills! And lets not blame the kids, they are the way they are because almost our entire society (covering all age ranges) has been based on instant gratification for the past decade or two.

    As for the original question it depends what the debts are. If it is a low interest mortgage where the £600 will be early repayment I'd take the holiday now, with a £500 to £100 split in the following months. If it were credit card bills, overdue mortgage etc then I would pay the full £600 towards the debt until it was cleared.
    :A If saving money is wrong, I don't want to be right. William Shatner

    CC1 [STRIKE] £9400 [/STRIKE] £9300
    CC2 [STRIKE] £800 [/STRIKE] £750
    OD [STRIKE] £1350 [/STRIKE] £1150
  • Percy1983
    Percy1983 Posts: 5,244 Forumite
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    Certainly a good answer, I must say its very much what we did in debt clearing, at first it was every spare penny and as the debts came down (and interest charged reduced), then we started to have a monthly fund each to spend on what we wanted as it was all under control. But its true the habit was set at first and even once we had a spare budget we didn't spend it all every month.
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • Sue-UU
    Sue-UU Posts: 9,565 Forumite
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    antonia1 wrote: »
    While I agree in principle, perhaps it would be better if this sort of self-management was taught by parents, rather than expecting state-funded schools to take over yet more basic parenting skills! And lets not blame the kids, they are the way they are because almost our entire society (covering all age ranges) has been based on instant gratification for the past decade or two.

    That's ok so long as the parents have been educated in basic finances themselves, which all too often is not the case. That's why Martin is petitioning to bring compulsory education into the school curriculum

    I was never given any education re financial affairs at school, thank Heavens common sense rules pretty well.

    Sue
    Sealed Pot Challenge 001 My Totals = 08 = £163.95 09 = £315.78 10 = £518.80 11 = £481.87 12 = £694.53 13 = £1200.20! 14 = £881 15 = £839.21 16 = £870.48 17 = £871.52 18 = £800.00 19 = £851.022021=£820.26[/SizeGrand Totals of all members (2008 uncounted) 2009 = £32.154.32! 2010 = £37.581.47! 2011 = £42.474.34! 2012 = £49.759.46! 2013 = £50.642.78! 2014 = £61.367.88!! 2015 = £52.852.06! 2016 = £52, 002.40!! 2017 = £50,456.23!! 2018 = £47, 815.88! 2019 = £38.538.37!!!! :j
  • Mojisola
    Mojisola Posts: 35,559 Forumite
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    Sue-UU wrote: »
    I was never given any education re financial affairs at school, thank Heavens common sense rules pretty well.

    Over 40 years ago, during our last year at school, I remember having a discussion with friends about what we wished we had been taught at school that would help us most in adult life.

    Top of the list came an understanding of financial affairs - it's so sad that nothing has changed.
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