to cash in my childrens savings plans?

[kaz33]

We are in debt, for several years since the boys were born (8,6) we have been struggling with debt. I gave up my lucrative job and we bought a house we could not afford (only three beds but nice area)

DH just got a £20K bonus, and have just paid off over £10k. We are roughly £30k in debt but finally we are earning enough to maintain our comfortable but not totally extravagant lifestyle.

The boys have got about £7.5k in their savings plan I want to cash them in and pay off some more of our debt.

Is this totally immoral ? What would you do?

I'm not scared of harsh words

or to be more precise the servants being given money was about using money wisely

Bullshit vinblanc utter bullshit. You should be able to live quite comfortably on the OP's income if you are sensible.

The people I know who have money problems in higher income brackets are without exception people who have over extended themselves in the good times. The bonus thread kind of made me laugh, because I know people who have bought houses based on what their potential bonus might have been. Stupid, not the bank's fault the buyer's fault.

You just don't do it. It isn't that hard really. You don't buy a house you can't afford on one salary (if you are planning kids), you don't buy cars you can't afford to buy outright, you don't spend money you don't have. Why does it seem that everyone has forgotten this basic stuff?

Does it mean that you miss out on things that other people around you might be getting up to? Well sometimes. But if you are an adult you realise that you can't always have what you want and it really is a good idea to cover what you need sorted out first.

Someguy

1 I dont need them, my child benefit is also donated to a charity.
2 I also think they are a farce and dont want to be involved. When we did need them we were overpayed, despite us giving them the figures. It put me through a lot of stress.

Although actually we may not be eligible anymore, not sure. We don't use childcare as dp works reduce hours so he can be there for dd at the start and end of the school day.

I agree Morloth, our debt was caused in part by us trying to live like a two income family while I was at home with dd.

alwayslookingforanswers, I always get me parables mixed up!
Yep, the prodigal son isn't the one she was meaning and even that doesn't fit with "make as much money as you can and stuff those who can't earn as much", I don't think that one is in the bible

The threshhold for WTC is only about £15K. Gross. Per annum. Per couple.

Are you sure you're not confusing WTC with CTC? That threshhold is much higher.

You've got to be pretty low income to be eligible for WTC because £15k for a couple with kids gross isn't very much anywhere in the UK (in some circumstances a single person can claim WTC, but the threshhold is still the same).

Actually alwayslookingforanswers, I've changed my mind again, you are completely right ! It's been a hell of a week at the Teapot house as my friend's DH died and I'm not as clear headed as I could be but it is a good example of needing to have your finances in order. He died before they'd got a will drawn up despite knowing what was coming and I'm not sure what she is going to face in the future, certainly not enough life assurance to pay the mortgage off though. Another friend then confessed that she'd been too ashamed to tell people that her DH had left her in May out of the blue and was facing a very uncertain financial future.

Kaz's DC's money is a good back up fund though I hope she will never need it for any of the above or anything similar and I do agree that given the current level of income they would be foolish to cash it in .

Yes expat I mean CTC, sorry.

Chocolateteapot - it's exactly that sort of scenario that has made us make the decision to put a little bit (and it is a little bit lol) away each month. Yes it could go towards paying off the debts a few months earlier than they will at current rates. But tbh I'd rather have "something" there to fall back on if the worst happens and pay extra interest than have nothing.

Going back to the OP, as opposed to what is or isn't "good" money management. At least she has realised there is a problem and is trying to deal with it.

I think that she is trying to do a brave thing and correct the position, and should be supported and helped not criticised.

indeed back to the OP.

What I think she should do - leave the children's savings as they are - don't add to them, but equally don't use them to pay off the debts - for the time being they can be used for the uncertain things in life (god forbiid they should happen).

Then go to here (MSE) and download the budget planner and fill it in so you can see exactly what you have left over after everything is paid each month.

Then go here and work out the best way to use your "spends" money to repay the debt (I'm guessing here it's not all in one place hence the link to the snowballing).