what would be best for my daughter

mercedes125

My daughter is in her first year as a qualified teacher she bought her first house last year and has spent just over £1000 on her very account for household items which has to start being paid next month at something like 37% interest ,

Also she has to find £500 to pay on her overdraft on a graduate account by July.

She can't really afford to pay the £500 and is there a way round paying the very account off at a lower rate.She hasn't got any credit cards or loans. Any advice would be appreciated.

Thankyou

DS4215

If she can get a 0% balance transfer on a new credit card that would allow her to transfer money to both debts and it would be interest free if paid off within the interest holiday.

Pollycat

Did she take advantage of Very's 'buy now, pay later' offer a year ago and it's now time to either pay in full or start paying at a (extortionate) rate of almost 40%?

If so, it's probably a bit late to start thinking about a way to pay less then the interest amount charged by Very.

What would be the financial impact of not paying the £500 overdraft?

How much disposable income does she have?

It may be a good idea for your daughter to post a Statement of Affairs (SOA) using the template in the sticky above.

mercedes125

DS4215 wrote: »

If she can get a 0% balance transfer on a new credit card that would allow her to transfer money to both debts and it would be interest free if paid off within the interest holiday.

Can you transfer money to catalogue accounts and overdrafts, it's that long since we had one I'm unsure.

mercedes125

Pollycat wrote: »

Did she take advantage of Very's 'buy now, pay later' offer a year ago and it's now time to either pay in full or start paying at a (extortionate) rate of almost 40%?

If so, it's probably a bit late to start thinking about a way to pay less then the interest amount charged by Very.

What would be the financial impact of not paying the £500 overdraft?

How much disposable income does she have?

It may be a good idea for your daughter to post a Statement of Affairs (SOA) using the template in the sticky above.

Hi yes she did take advantage of buy now pay later
I'm not sure what the financial impact on notpaying the overdraft
she has about £250 a mtg spare and that's after every single thing is paid.
I will ask her to write everything down for me to to SOA

jfh7gwa

I will ask her to write everything down for me to to SOA

I know OP's intentions are good, but I would like to point out that the daughter should be the one taking responsibility to get herself out of this little mess. Borrowing money to pay for a large bulk (most of which I'm assuming were non-essentials? you don't need £1000 to set up a home in most cases, unless her house was in an absolutely unlivable conditon, if you seek out second hand items and go without stuff until you can buy them outright) and being unable to plan/co-ordinate paying it back, first home to budget for, etc - these finance skills need to be learnt by your daughter...

To help/guide and advise = good
Enabling her / preventing her from seeing the repurcussions of her borrowing = bad

I just want to flag that to OP, in case this might be a problem down the line.

19lottie82

Well, ideally yes, but it's done now and I think the OP is doing the best she can. Rather than paying off her DDs debts, she is helping her tackle them responsibly and hopefully stopping her getting in to this situation again.

mercedes125

jfh7gwa wrote: »

I know OP's intentions are good, but I would like to point out that the daughter should be the one taking responsibility to get herself out of this little mess. Borrowing money to pay for a large bulk (most of which I'm assuming were non-essentials? you don't need £1000 to set up a home in most cases, unless her house was in an absolutely unlivable conditon, if you seek out second hand items and go without stuff until you can buy them outright) and being unable to plan/co-ordinate paying it back, first home to budget for, etc - these finance skills need to be learnt by your daughter...

To help/guide and advise = good
Enabling her / preventing her from seeing the repurcussions of her borrowing = bad

I just want to flag that to OP, in case this might be a problem down the line.

I kept telling my daughter how much interest etc she would have to pay back and how quick the time would come to start paying back.But since she bought the house she has split up with her partner who helped out financially.

mercedes125

19lottie82 wrote: »

Well, ideally yes, but it's done now and I think the OP is doing the best she can. Rather than paying off her DDs debts, she is helping her tackle them responsibly and hopefully stopping her getting in to this situation again.

That's it I can't afford to pay her debts, she is really good with her money the mortgage gets paid bills etc. Its just this with very I'm sure she will learn from this in the future.She is finding it hard as she has split up with her partner so has to pay everything herself.

RAS

She need to take this on, preferably posting herself.

But a few idea include

1. Store cupboard challenge on the Money Saving Old Style forum.
2. Carboot, e-bay and amazon for everything that she no longer needs (anything left in your loft that she has not used for the last 4 years?)
3. She if she can get a small credit card account, low interest is beeter than Very. Buy what she would normally buy (say petrol) on the card and then pay that amount off Very immediately.

Stark lesson in the need to pay back £100 per month so this was cleared in time. After all very relyon people mucking up like this.

And she need to freegle/freecycle etc for stuff for a while.

jfh7gwa

19lottie82 wrote: »

I think the OP is doing the best she can..

I agree But I just wanted to highlight that it isn't entirely for the OP to do the best she can.. her daughter was the one that agreed to this sum of money being loaned, and ultimately it's her responsibility to co-ordinate the repayment plan. Mum's doing her best to help, but it's not - and shouldn't be - down to her entirely. Otherwise where is the lesson?

19lottie82 wrote: »

hopefully stopping her getting in to this situation again.

Hopefully yes. As long as daughter realised how much her mum has been trying to help and recognises the lesson in all of this.

I don't think we disagree on anything, it's more that I've become slightly cynical about the level at which a parent does good vs. harm when it comes to passing on financial acumen, that's all