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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Loan for childcare. Am I the only one?

36 replies

SofiaE · 05/03/2021 19:40

Hi all!

I decided to take a loan to cover some of my 2-year-old childcare fees.

I find gov help useful but limited (I am using all available options) when it comes to covering the childcare costs that a full-time working parent should pay monthly. Makes sense to me because I can continue working, and will pay off the loan over time. Btw I find the terms of the loan quite good for a relatively small amount.

Have you ever tried to borrow (like friend’s money, credit card, anything else) to cover the extra costs because of childcare???

Knowing I am not the only one out there would boost my confidence....

OP posts:

WorraLiberty · 05/03/2021 19:42

Makes sense to me because I can continue working

In what field?

Journalism?

Research?

OneRingToRuleThemAll · 05/03/2021 19:44

You're not the only one. My DD was in Year 5 when I finished paying off her nursery bill.

HmmmmmmInteresting · 05/03/2021 19:46

@WorraLiberty

Makes sense to me because I can continue working

In what field?

Journalism?

Research?

That's a bit harsh. Even if op is a journalist it would be interesting to know if anyone has done this. It would highlight a big problem.

SnackSizeRaisin · 05/03/2021 19:47

If you didn't work could you afford to live? Presumably you don't have a partner contributing to the household.

It might be a worthwhile investment to keep working..but I would only do it if I had a plan to pay it off. Otherwise would you be better off on benefits until your child is 3?

Have you checked if your income is low enough to get the free hours for 2 year olds?

activitythree · 05/03/2021 19:50

Makes sense to me because I can continue working, and will pay off the loan over time.

If the past year hasn't taught you that nothing is guaranteed then I don't know what will.

WineInTheWillows · 05/03/2021 19:54

Where we live, childminders are literally half the cost of nursery. Worth looking into?

BeakyWinder · 05/03/2021 19:56

@WorraLiberty

Makes sense to me because I can continue working

In what field?

Journalism?

Research?

Rosieposie79 · 05/03/2021 19:59

My MIL took out a loan to pay school fees to avoid having to take DH out of private school after her divorce. Then she gave him with the bill when he got his first job!

DinoGreen · 05/03/2021 20:04

It only makes sense if it’s very short term and your job is one where taking a few years out would be highly damaging to your career. Otherwise it doesn’t make much sense at all! If your DC is 2 then you will get 30 free hours when they turn 3 which makes a huge difference to the bill.

Mummadeze · 05/03/2021 20:07

I hate to say it but what happens if you lose your job?

notdaddycool · 05/03/2021 20:08

Our final year of two in London nursery necessitated an interest free credit card. Then one went to school the other got 30 hours and we paid it off the next year. I saw it as cash flow. It’s not going to be forever even if it feels like it.

Howdoin · 05/03/2021 20:16

Did he pay it? @Rosieposie79 and do they still speak?!

forinborin · 05/03/2021 20:22

I did that, I found myself a single parent a few days after my second child was born (the first one was 1 at the time), and I had to return to work when she was not yet 6 months. My total childcare bill was nearly 3K/month at the worst of it, and together with mortgage, bills, food and commute it was drowning me even with a good salary. 30 hours did not help much, with the way that the nursery had structured the fees schedule it was equal to only around 25%-30% discount. Not bad, but not a lifesaver either.

I took a regular loan to help with the expenses, it was the rational way to approach it compared to paying childcare fees out of salary and then putting food / commute / bills on the credit card. It's been 5 years now and I have another half year left to pay and then hurray - will be debt free apart from mortgage. Can't wait, it's been keeping me awake at night sometimes.

MyLittleOrangutan · 05/03/2021 20:33

Sounds like a good plan!

DoLallyTapMum · 05/03/2021 20:44

I considered it but ultimately chose not to as I relocated to a cheaper area instead where childcare fees and my mortgage together were less than either rent or childcare fees would be in London (where I was when I got pregnant). That being said if I were to have another child I probably would take a loan to cover childcare costs so that I could spread them out and have enough left over every month to save a bigger security net. My job is one I am very unlikely to lose but if that happened a low interest loan would be less of an issue than having no savings would be.

Original poster

SofiaE · 05/03/2021 20:52

I am a junior accountant...anw...

and yes! I am a proud single mum! But I thought couples would have similar problem...

@forinborin @notdaddycool - very similar!

OP posts:

NotFabulousDarling · 05/03/2021 20:54

@WorraLiberty

Makes sense to me because I can continue working

In what field?

Journalism?

Research?

I wondered this too. I don't understand the OP. What would be the point of paying out more than you're earning to cover childcare?

shouldistop · 05/03/2021 20:55

I don't know anyone who would do this tbh. And I know a wide range of people from all income brackets.
Your op does seem a bit like fishing for info.

GrumpyHoonMain · 05/03/2021 20:55

@Rosieposie79

My MIL took out a loan to pay school fees to avoid having to take DH out of private school after her divorce. Then she gave him with the bill when he got his first job!

Haha I like that

shouldistop · 05/03/2021 20:57

It really doesn't make any sense to take a loan to pay for childcare. You're having to pay the loan back monthly too. I don't see how this could make financial sense.

May17th · 05/03/2021 20:58

How long do you plan to do this for OP? Work to borrow money?

1990s · 05/03/2021 20:59

Yep absolutely. Haven’t done it yet but likely to, like others have said I just see it as cash flow.

Live in London, one of us on furlough... needs must.

1990s · 05/03/2021 21:00

@May17th

How long do you plan to do this for OP? Work to borrow money?

There is more to it than the moment right now.

There is keeping your job, progressing in it, pension payments made while you’re doing that...

KEVINChristmas · 05/03/2021 21:02

I've known people who have done this. Seems quite sensible really. Nursery is expensive.

BeanCalledPickle · 05/03/2021 21:34

Not quite the same but we ran down savings to pay nursery. I worked out that I handed over about 100k over the years they were there (both started at one, left at 4.5 and were two years apart in age.

So many reasons to work. Career development. Pension contributions. Mental health.

I can see that I might feel differently if I didn’t earn reasonably well. Certainly the year they were both in at the same time we were paying more than my DH earned. But it always always felt worth it.

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