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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to take out a personal loan while my DS is at nursery?

41 replies

Goldduck · 06/07/2021 23:18

We are both teachers (I'm part time and my husband is full time). My DS is still quite a way off his free 30 hours at nursery. Would I BU to consider taking out a personal loan? I just want to be about to spend more freely and have more experiences together as a family without always worrying that we're depleting the modest amount of savings we have in the bank. Or should I just stick it out for another year or so? I would also like to do some minor home renovations and I am very impatient! I know I could easily get a loan and could pay it back no problem. It would just be nice to see a larger amount in the bank and then not feel guilty about booking breaks away or spending money on our home.

OP posts:
Saidtoomuch · 06/07/2021 23:20

There is absolutely no point in getting a loan whilst you have savings. What sort of percentage would you pay on a loan currently vs the pitiful 0.1% interest some of the savings accounts are paying?

toastantea · 06/07/2021 23:20

I just want to be about to spend more freely and have more experiences together as a family without always worrying that we're depleting the modest amount of savings we have in the bank

Live within your means. Your idea is absolutely crazy.

user1473878824 · 06/07/2021 23:21

Stick it out. In a year’s time you’ll still be paying it back and resent it.

SilenceOfTheNaans · 06/07/2021 23:22

Honestly I wouldn't and think it's a terrible idea. Unless it's a car loan or furniture finance I would avoid loans of any sort tbh.

Living beyond your means is never a good idea. You also need to take into account your loan repayments and the fact you'll be paying interest.

Just no on so many levels from me.

GreyhoundG1rl · 06/07/2021 23:23

It would just be nice to see a larger amount in the bank and then not feel guilty about booking breaks away or spending money on our home.
Absolutely nuts Confused. It wouldn't be yours, you'd need to pay it back 🤦‍♀️

spotcheck · 06/07/2021 23:23

No. Bonkers.
A loan isn't free money. Zero common sense

yikesanotherbooboo · 06/07/2021 23:23

Don't borrow money if you savings; that is crackers. Live within your means if at all
Possible and if not , use your savings.

spotcheck · 06/07/2021 23:24
  • it makes zero common sense
OwlinaTree · 06/07/2021 23:25

No don't get a loan. Then you are stuck paying a loan and nursery fees.

It is crap paying the fees, but it honestly does get better when they hit the 30 hours, especially if you are teachers and you can find some term time only places.

Original poster
Goldduck · 06/07/2021 23:26

It is only 3% interest so not a huge amount. I know you're all right, I decided to go part time to spend time with my little boy in the week and I love it and we do lots of lovely things together (nothing expensive, just farms and swimming etc). It's just me wanting to book more little trips away and do more bits around the house. It just feels very frustrating not being able to do it all sometimes but I know that this is very much a first world problem!

OP posts:
Original poster
Goldduck · 06/07/2021 23:29

Thank you everyone, deep down I think I knew it was a stupid idea but I needed to hear it from other people to stop myself being an idiot 😅

OP posts:
Leeds2 · 06/07/2021 23:30

Just no. Absolutely ridiculous idea. It will cost you a fortune in interest.

Would it be possible for you, or DH, to get a second job during the summer holidays? I have a teacher family member who did cleaning, and bar work, during the summer whilst her DH looked after the DC. Or tutoring? To me, that makes much more sense than taking out a loan.

SD1978 · 06/07/2021 23:34

Learning that savings whilst having debt is false savings, is one of the hardest things I've ever learnt- and I'm still not fully there. Use what you have, you don't know what will happen in the future.

Original poster
Goldduck · 06/07/2021 23:34

Leeds2 We usually both examine every year but because of Covid that hasn't been an option for the last 2 exam seasons. Fingers crossed that we'll be able to next summer. I don't really want to work in the holidays and take any time away from us being together as a family x

OP posts:
Ozanj · 06/07/2021 23:38

I used to invest while I had (cheap) debt. Don’t count it out. I now have twice as much saved as I owe in my mortgage & almost as much as my property value. But you do need to be disciplined about it.

BackforGood · 06/07/2021 23:38

Agree with everyone else. It's a ridiculous idea.

Both from the pov that it will cost you far more to do X if you borrow then pay back with interest, than if you SAVE and then pay for whatever.

Secondly, if your little one is still a way off Nursery funding, there is no point spending loads on entertaining them. They won't be aware that X or Y is further away or cost more money than doing A or B. At that age you can make anything exciting. Even a walk round the block or a bucket of water in the garden. You don't need to be visiting places that cost entry money.

LolaButt · 07/07/2021 00:02

@Ozanj

I used to invest while I had (cheap) debt. Don’t count it out. I now have twice as much saved as I owe in my mortgage & almost as much as my property value. But you do need to be disciplined about it.
Same.

Loan rate was 2.9%. Already made the interest back for the whole term in six months through investments and some more on top.

FaceyRomford · 07/07/2021 02:30

This is the first step on the road to bankruptcy. FFS don't do it.

1forAll74 · 07/07/2021 03:00

No would never get a loan,or even a credit card.

PerveenMistry · 07/07/2021 03:07

No.

Embrace frugality as a fun challenge. It's not deprivation to live creatively within your means.

"Use it up, wear it out, make it do, or do without."

Your future self will thank you.

CrazyCatsAndKittens · 07/07/2021 04:11

People always think that they can pay it off easily, but then they can't and it spirals. Little kids don't really care about expensive outings and trips away. I'm sure you LO is more than happy with the stuff you do.

My advice about the house is to set a monthly "home improvement" budget. Set an amount you can afford and do your house improvements from that. Time passes quickly and there is always stuff needing done around the house.

BritWifeInUSA · 07/07/2021 04:23

If you can pay it off “no problem at all” then put the amount of the repayment into your savings each month instead.

I hope you don’t teach anything related to accountancy or financial planning.

coronafiona · 07/07/2021 04:28

Working full time is the answer, not debt Hmm

BarbaraofSeville · 07/07/2021 04:50

Loan rate was 2.9%. Already made the interest back for the whole term in six months through investments and some more on top

But the OP is talking about borrowing money to spend, not invest, totally different scenario.

OP why don't you spend some of your savings and the money you'll have from not paying a loan off every month?

Also have you reviewed your budget to check you're getting the best price on utilities, broadband etc? If not, you can save loads, which frees up more money for fun stuff.

Do you have annual passes for attractions that you like to visit? That can be a great way of having family days out. Plus I bet you can get some good offers for days out and passes as public sector workers. Are you eligible for the civil service sports and social club? For about £5 a month, you can get free English heritage membership and lots more beside.

Weekends away can be done quite cheaply if you look for offers in Travelodge type places.

Oldpeoplesprinting · 07/07/2021 05:44

Small kids don’t care about days out & stuff. When mine were younger I used to tie myself in knots doing fun things - now they’re older they don’t remember any of it 😩

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