Advice plz on kids borrowing

jaydee66

I'm appalled at the way my daughters bank is throwing money at her since she turned 18 1 month ago. We have been with this bank for 20+ yrs and when dh took her in to change the acc to a student one he did tell them NO OVERDRFT or credit cards. Now 1 mth later they have given her and she has spent a £200 od (which they told her would cost her pennies) and filled in cc app with £500 limit. I'm really angry about it. She only has a sat job while at college 140approx a month and EMA of 160pm til May. Her car ins + tax is due in Feb and Have told her I will SORN it before lending her money if she can't pay it. (We paid it when she passed her test) How Do we stop her falling into the debt trap cos we can't afford to pay hers back as well as our own.
Is there any way we can stop her borrowing money while at our address we have worked hard to stop our address being blacklisted. I have tried talking to her it obviously isn't working. Any advice plz.

tealady

I would let her learn the hard way ie don't bail her out. After all the lessons we learn the hard way are the ones we tend to remember.

hypno06

I agree with tealady. You have to let her learn the hard way, sad and frustrating though it may be for you.

Hopefully she will learn the lesson pretty quickly!

Keeping_Positive

Try sitting down and go through how long it would take to pay back what she has borrowed and how much interest. Maybe use this site/board to show her examples.

Other than that like the others said sometimes the only way to learn is the hard way. I started of with a credit card at 19 to cover January one year. Over 10 years later I now owe £18K!!!

laura_24601

Sorry to say this but she's got to learn from her own mistakes. She's old enough to take responsibility for her self. I'm 19 yrs old (20 in March) and I've never had a credit card and don't intend to either. If I can't afford something, then I can't have it. Simple.

hypno06

How about showing her the snowball calculator with minimum payments entered in. Perhaps if she knows that she will still be paying for that particular shopping spree in 40 years time she might think twice?

www.whatsthecost.com

madmich666

Hiya, sorry Ive not got any advice but my bank did the same when I turned 18. Unfortunatley it took me a long time to learn and I wish I knew then what I know now. I think showing her whatsthecost.com would be good I do that with my hubby when ever he wants to use credit cards to pay for anything it made him think twice!!!

chrisbee_2

hi jaydee66 why not change back to an account with no overdraft facilty?

CLAPTON

Whyever does she have a car... its one of the major causes of debt as people consistantly totally underestimate the actual costs of running a car.
Sit down with her and work out the real cost of running the thing.

ZTD

jaydee66 wrote: »

I'm appalled at the way my daughters bank is throwing money at her since she turned 18 1 month ago. We have been with this bank for 20+ yrs and when dh took her in to change the acc to a student one he did tell them NO OVERDRFT or credit cards. Now 1 mth later they have given her and she has spent a £200 od (which they told her would cost her pennies) and filled in cc app with £500 limit. I'm really angry about it. She only has a sat job while at college 140approx a month and EMA of 160pm til May. Her car ins + tax is due in Feb and Have told her I will SORN it before lending her money if she can't pay it. (We paid it when she passed her test) How Do we stop her falling into the debt trap cos we can't afford to pay hers back as well as our own.
Is there any way we can stop her borrowing money while at our address we have worked hard to stop our address being blacklisted. I have tried talking to her it obviously isn't working. Any advice plz.

The address will not be blacklisted - only people have credit records.

IMHO, SORNing her car will be an excellent way of teaching her that money demands do have to be prioritised. *Don't* become her taxi service. She'll be thinking of her car every time she goes on the bus.

Snaggles

Or....DO become her taxi service, but be the most embarrassing 'Mum's Taxi' you can possibly be - turn up to pick her up in your dressing gown, with rollers in your hair, blasting Des O'Connor from the car stereo, and make sure you pull up right alongside her just as she is talking to a large group of cool looking people! :rotfl:

Oh, and don't forget to shout 'home time for you, Mummy's little chicken-licken, I've made you a nice cup of Horlicks and your teddy bear is on your pillow next to your nightdress'...hahahahaha!