To use my son's savings to pay off debt?

[Bibs2014]

What would you do?

We are £17,000 in debt due to failed IVF .

DS has £1200 in the bank (not including interest) as I started saving £100 a month for him last year in a high interest account that I couldn't touch for a year.

It's now matured. Should I take the money out and clear some of the debt? It's all on 0% credit card and is manageable (at the moment).

The reason I'm thinking we should is because we want to move house so it looks better to have less debt.

Reason against is that even though I could save the money up again in the future, you never really do, do you? I already started late as I wanted to start saving from his birth and didn't start till he was 16 months so I already 'owe' him £1600 😂

You have to make the right decision for the whole family. You had good intentions when you saved the money but circumstances have changed. Your child, your money that has been saved. Use it to do what you think is best for the whole family. That's what parenting is.

I want to know where you are getting 6% ? I thought rates like those disappeared back in 2007-8...

Use the savings and start again when you can afford to. When my DC were tiny we barely scraped by but by the time they were teens our position had dramatically improved due to DH's work progression. Is this a possibility for you?

Do you have anyone who could lend you the money for a while? Pay off the debt then remortgage and include enough to repay the reletives. Rolled into mortgage repayments will be less painful than monthly payments and sad reminders of the failed IVF. That way you could potentially move since you are already paying £350-£500 a month on the CC loan which would buy a lot of extra mortgage.

Sorry for your loss. I'd really want to clear the debt, move home and concentrate on having a great life with dh and ds.

Why not move to a cheaper house? You'd have more money to pay off your debts?
How old is he?
Does he know about it?
I know someone who's mum saved a few thousand for him and said it was for when I was 18. She got into debt and took it to pay off debts and he was so bitter that she'd taken his money.
Its not going to make an awful lot of difference to your debt to be honest, but could mean he could learn to drive which opens up a lot of doors and is very difficult to pay for when you're 17 andearning less than minimum wage.

You can't afford to save for him. It's false economy/budgeting.

Unlucky - it's a Halifax Children's Regular Saver account. Think it's gone down to 4% now though.

Meekon - he's 2.5 years old.

Matilda - don't have a family member who we could borrow from.

Pp saying this is a toddlers money that is their own are mad. Op you have been saving money you can't afford so put towards debt and save for your dc when you can afford to do so without worry.

tiger you describe a totally different situation. Clearly if someone else had specifically gifted money for DCs future it should be considered as such. Op is talking about family money.

Yes. Debt first, save later.

Thanks bibs it is 4% ...at that rate I would if you can renew for another year but view it as money towards your credit card being paid off...

This is the parents' money - not the childs, no matter what the format in which they saved it or the intent they had when they saved it.
This

If the money is in an account in the childs name then it belongs to the child. If you don't want it that way dont put it in their name.

Since your update about the savings earning 4% interest and you paying 150.00 more than the minimum payment off the debt, I would leave the savings where they are, continue saving the £100.00 you're already investing and divert the extra £150.00 into the savings account to earn interest. If you don't touch the savings you should have saved enough to pay the balance off before the 0% rate ends.

You will be "borrowing " the savings. Once you're debt free you would soon pay it back.

Thanks everyone, lots to consider.