Using Kids Savings to pay off our debts?

Archi_Bald

Mr_K wrote: »

HMRC might start to get interested if you use this money, as you spending it suggests it's your savings all along that should have been taxed.

We don't know how the money has been saved, so tax may well have been paid. Even if the money is in the kids' names, tax might have been paid. Also, we don't know whether the parent(s) would qualify for tax-free interest.

dealer_wins

Any money specifically saved for your kids should remain untouched.

Too much of a risk that you will never repay it.

jamesd

moneydoesnotmakeyouhappy wrote: »

Is the right thing to do as me and wife feel like we are betraying our kids.

I don't think it's betraying your kids. At 20% the interest on that debt is costing you £44 a week. That's money that is not available for the rest of your budget that could help them and the financial stress is also probably bad for them because of the way it affects you.

With you saving perhaps £2300 in interest alone in the first year it shouldn't be too hard to top the money back up and end up having more there.

opinions4u

If the money is in the name of your children, or you act as a trustee for their benefit, then it would be morally and probably legally wrong to take their money to repay your debt.

If the money is sat in an account in your name then get the debt repaid, work out how to reduce your spending and set up a proper savings plan for the benefit of your kids.

good_advice

Good fiction story for 4.16am