Debt and a baby

motorguy

Red-Squirrel wrote: »

Would you count mortgage and student loan debt? Because loads of people couldn’t have children by that standard!

A mortgage is debt against an asset. We all need somewhere to live.

If the O/P has £50,000 of unsecured debt then IMHO they need to be addressing that rather than making the problem infinitely worse by having another child.

motorguy

Fireflyaway wrote: »

I don't think the amount of debt is necessarily the problem, rather how it impacts you. If you have lots of debt but a big income then it's not so worrying as a medium debt with a small income. Is it just there in the back of your mind or do you ever find yourself with no money or unable to pay a bill?
I'd do an accurate income and expenditure. Look ahead as well. Will you have 2 lots of childcare bills? Will both of you work etc?
Having debt wouldn't stop me having a child unless I was in a really desperate situation ( in temporary accommodation or unable to always have the lights on or buy food).
The essential thing for me would be to have an emergency fund ready. Protect yourselves.
In short so long as you can get by I'd have a baby and carry on with the paying off debt.

If thats £50,000 of unmanaged high interest debt then i dont care if the O/P is on £150,000 a year, thats a severe problem thats going to take years to bottom out.

If its £50,000 because its home improvement loans, or a student loan or £50,000 of a mortgage against a £100,000 house then i agree with out.

A baby for most generally means 6 months to a year with a reduced or no second income = adding to the debt problem and a very expensive child to rear = adding to the debt problem.

I think the O/P is right to be cautious.

AnotherJoe

motorguy wrote: »

If thats £50,000 of unmanaged high interest debt then i dont care if the O/P is on £150,000 a year, thats a severe problem thats going to take years to bottom out.

If its £50,000 because its home improvement loans, or a student loan or £50,000 of a mortgage against a £100,000 house then i agree with out.

A baby for most generally means 6 months to a year with a reduced or no second income = adding to the debt problem and a very expensive child to rear = adding to the debt problem.

I think the O/P is right to be cautious.

It can't be the latter or they would have paid a lot more than £359 off it in a year.

andrewf75

Assuming you’re not very high earners who will be able to get on top of the debt quickly, I wouldn’t have the second child.

frugalwin

Red-Squirrel wrote: »

Would you count mortgage and student loan debt? Because loads of people couldn’t have children by that standard!

A mortgage, no. Having a mortgage on a house is unlikely to result in a negative net worth in the same way as consumer debt. It's secured against an asset that is (hopefully) worth more than it, and the monthly payment replaces rent (which would probably be higher). I didn't expect I'd have to clarify this, but thanks for pointing it out.

Student loan debt, again, no. It isn't really a debt, it's more like a extra tax on earnings over a certain threshold. When conventional wisdom is to not attempt to pay it off quicker than you absolutely have to, it's clearly not being treated like a normal debt. Again, thank you for bringing this up.

I believe the OP is in the position of being in about £50k of unsecured consumer debt, which needs to be repaid regardless of her situation. In my opinion, considering another child is absolute madness.

Primrose

I thought the whole point of becoming a parent was to bring up a child in a stable and secure environment.
I cannot imagine what is possessing your husband to think that bringing a second child into a marriage where you are already £50,000 in debt is to be giving it a good start. Your current child is already in jeopardy of losing a secure environment if sudden illness or redundancy were to overtake you.

Immediate gratification of your desires is one thing if you can afford it but clearly you are not in this position and it will likely be some time before you have eliminated your debt, however it was caused.

Will you really be able to sleep securely at night owing all this money having brought a second child into the world?