Helping someone become DF

Imelda

Hi all,

I became debt free early this year and since then my financial health has changed dramatically!

I got promoted, was given a 40% pay rise and bonus :j

I am also in the process of selling my flat (should exchange by the end of the week) and have moved in with my OH :smileyhea

So, all things being well I should have almost £50k in savings by September. I will also be saving about £1500 per month as I will have very little outgoings. And then hopefully I should get another good bonus next year. My OH and I have decided to stay living where we are for the time being so the money will just be sitting in the bank.

Since I am in this position I would love to help my mum out. She has got about £1500 on a credit card and £9k left of her mortgage (this is what I know about- she has always been terrible with money so I wouldn't be surprised to find that there's more).

My feelings are- to pay off her credit card- it is on a 0% that runs out at the end of September and then get her to pay me back each month interest free. But it would have to be on the strict understanding that she doesn't open another.

But then I think maybe I should pay her mortgage off too? She is coming up to retiring but has already said she will have to work until she is 62 because of the mortgage. I'm not sure of the rate, but again I wouldn't ask her for any interest so it would be cheaper and perhaps she could retire in 2 years rather than 3.

What do you think? I have asked my OH and he thinks I am well meaning but doesn't think I should pay the mortgage off.

Sorry, I will thank you all tomorrow, I may not be able to log in again tonight.

Thanks,

Imelda

HairyHandofDartmoor

It's a really kind impulse. It would certainly help her to pay off her mortgage wouldn't it, but you would need to educate her in money saving ways, so she didn't run up more debts.

Well done on becoming debt free! One day soon I hope to emulate you!

climbgirl

Imelda wrote: »

My feelings are- to pay off her credit card- it is on a 0% that runs out at the end of September and then get her to pay me back each month interest free. But it would have to be on the strict understanding that she doesn't open another.

Would she actually stick to this though? I'm always a bit skeptical of people rushing in to help with other's debts when they haven't really had their own lightbulb moment - have they really learned their lesson?

It's a nice gesture but if she hasn't changed her ways, she could be in the same position in a year or so and you'd have thrown your money away. If you want to help, I'd be more inclined to contribute to the mortgage a bit. By contributing to the mortgage, you'd free up some of her income and she could clear her own credit cards....