Jump to content

Am I missing something?


  • Please log in to reply
10 replies to this topic

#1 MintyBiscuit

Posted 24 January 2013 - 11:35 AM

We have a personal loan that we're on track to have paid off by the end of May, about two years ahead of schedule. We also have a savings account for DS that is about $100 shy of the full amount owing on the loan. I'm considering using DS's money to pay off the loan immediately, freeing up $600 a month in loan repayments to pay back DS's money and avoiding another four months worth of interest. I don't know if it's just because I feel a little guilty doing this, but I feel like I'm missing something.

With the amount we're saving anyway, and the loan repayments, we'd be able to pay back his account in about two months. I'd also pay extra to make up for the loss of interest in that time - I've worked out what a year's worth of interest would be on the amount currently in there and would pay that amount in addition to what's in there now. Does it sound like paying the loan off is the smart thing to do? I'm 99.9999999% sure it is, and pretty sure it's just guilt making me second guess myself

#2 busymumof1&1/2

Posted 24 January 2013 - 11:40 AM

You are correct. It makes more financial sense to pay out the loan. Just be aware that the savings in interest may be taken away because of early release clause. Check with the financial institution for the actual payout figure, they should be able to give this to you straight away.


#3 FiFo

Posted 24 January 2013 - 11:44 AM

If I read your sig right your DS is only 1...so he is not going to know or care how much money he does or doesn't have.
DEFINITELY pay off your loan. Don't waste your money on interest if you can avoid it. It sounds like you have the perfect plan to pay back your DS's account so it will all even out and you will be better off without a debt looming over you.

Ditch the guilt and good luck

#4 MrsLexiK

Posted 24 January 2013 - 11:44 AM

Is it money you have been putting into the account? In that case I would not feel guilty at all, if it is money that he has been given I get that you may feel guilty.  I know my parents took money out of our accounts a few times to pay for things (for us) and then put it back into the account at a later stage.

Just check that you won't be penalised by the bank for paying out the loan early.

#5 PrincessPeach

Posted 24 January 2013 - 11:48 AM

Given the rate of interest you are paying & the rate of interest DS is earning, then I probably would.

Personal loan interest rates are usually sky high.

#6 Tesseract

Posted 24 January 2013 - 11:52 AM

Always pay off loans first because the interest being charged is greater than the interest you earn on a savings account. Although you may need to take into account if there are penalties for paying off your loan early.

Don't worry that it's your DS's money. If you pay it back it's no problem surely? Look at it as him lending you the money to pay the loan off, for the benefit of the whole family, then you paying him back. You could even put a little extra in for his trouble lol.

#7 MintyBiscuit

Posted 24 January 2013 - 11:54 AM

Yeah, I've checked the early release fee and it's a difference of a few dollars whether we do it now or in May as it'll still be quite early, so interest savings still well outweigh it.

Some of the money is money he's been gifted, but he is only little and the money currently going on the loan would just be going into savings, so paying him back will be quickly and easily done. And I'll be paying him back more than the interest he loses. I think the guilt is a stupid throwback to when we were kids and our savings would get raided and never ever topped back up.

Thanks everyone. The guilt is silly, and we'll all be better off with no debt hanging over our heads original.gif

#8 joy6328

Posted 24 January 2013 - 12:08 PM

Pay off the loan.
pay back your son's account.
Start a regular savings plan with the original loan payment. If you don't save it, you'll spend it original.gif


#9 (feral)epg

Posted 24 January 2013 - 12:16 PM

The only (potential) issue I see with using the money from the savings account is that it could become easy to do it again and again and just end up wasting it.  But as long as you're normally quite sensible with money and don't expect to accrue any more debt I would pay out the loan.
And then perhaps use part of the loan repayments to add to DS's savings account.


#10 beaglebaby

Posted 24 January 2013 - 07:00 PM

I think you should do it as long as you trust yourself to repay the money.  If you're going to be making regular deposits to repay it to DS look at opening the Bankwest kids saver account, I think it is currently paying 8% interest on amounts up to $250 a month deposited.  It only lets you get the balance up to $3k over 12 months then moves it to a standard savings account and starts again, but it's the best interest rate anywhere on savings.

#11 MintyBiscuit

Posted 26 January 2013 - 09:50 PM

QUOTE (beaglebaby @ 24/01/2013, 08:00 PM) <{POST_SNAPBACK}>
I think you should do it as long as you trust yourself to repay the money.  If you're going to be making regular deposits to repay it to DS look at opening the Bankwest kids saver account, I think it is currently paying 8% interest on amounts up to $250 a month deposited.  It only lets you get the balance up to $3k over 12 months then moves it to a standard savings account and starts again, but it's the best interest rate anywhere on savings.


We did it, and have sat down and plotted out the payback plan including taking lost interest into account, so I'm happy.

That account sounds great, will have a look into it.




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Heartwarming prank gives single mum the house she was hired to clean

Cara Simmons arrived at work to clean a large and beautiful house in time for a party planned for that evening. It was soon hers.

Why we should stop telling new parents to 'enjoy every moment'

A few weeks ago, some dear friends of mine had their first baby. As the proud dad texted me a picture I had to fight the natural instinct to say “Enjoy every moment!”

Transgender dad breastfeeds his babies

A transgender man who breastfed his first baby - despite having his breasts removed as part of his transformation from female to male - has now had a second child.

Couple face $1 million medical bill and bankruptcy after babymoon birth

A Canadian couple were slammed with a million dollar medical bill after their daughter was prematurely during their babymoon.

Win one of 5 Little Tikes Cozy Coupe Sport

Australia?s No 1 selling car is now available in a Sports model and we have 5 to give away to some lucky Essential Baby families.

Cigarettes, junk food dominate supermarket sales growth

One in every five dollars spent at supermarkets goes on cigarettes or junk food, according to industry data.

Teacher under fire for breastfeeding in class

There is no doubt mums have a right to continue breastfeeding after they have returned to work, but one teacher in the US has taken it to the extreme.

Video: Baby sniffs beardless dad to make sure it's him

She looks him up and down and then touches his chin, but baby Lindsey still isn't sure this clean-shaven man is her dad.

The tragedy of losing a favourite teddy bear

We were green and uninitiated, perhaps a little naïve when it came to the favourite toy responsibility.

It's possible to workout while pregnant

Medical experts say intense fitness routines can be done safely during pregnancy - if the mums-to-be follow some guidelines.

Baby for Asher Keddie and Vincent Fantauzzo

Fans followed every step of her on-screen pregnancy in Offspring, now Asher Keddie is going to be a mum in real life too.

What parents really want for their kids

Are our hopes, dreams and expectations for our children what they really need?

'I had a feeling something was seriously wrong': the fight for Kaden's diagnosis

Before even giving birth, Katie Myers' maternal instincts warned her something was wrong with her baby.

When your pregnancy causes a relationship rift

Some dads-to-be don't miss a beat when their partner is pregnant; others struggle with a range of issues and can become withdrawn, right when their support is needed most.

Couple uses group photo trick to announce pregnancy to loved ones

Katharine and Kris Camilli devised a clever trick to immortalise their family and friends' reaction to their exciting pregnancy news.

Why Tracey Spicer has given up make-up

"After 30 years on television, I had become what I despised: a painted doll who spent an hour a day and close to $200 a week putting on a mask."

Empowering bikini photo of 46-year-old mum goes viral

When a group of teenagers made rude remarks about her body as she walked past them in a bikini at the local beach, Julie Cross refused to cover up.

Devastated widow discovers she's pregnant the day before husband's funeral

They had been trying to conceive a baby for seven years. Tragically Kristy Kirchner found out she was pregnant the day before her husband Royce's funeral.

Win a family pass to Disney Live!

We have 4 family passes to give away to see Disney Live! presents Three Classic Fairy Tales, touring Australia this December/January.

Gabriella Goat sues Peppa Pig

Every toddler's favourite television pig is being sued by an Italian woman who shares a name with a Peppa Pig character.

Meet the Mpregs, the male pregnancy enthusiasts

"Men can't have babies - that's something only women can do! But our community is full of like-minded people who wish otherwise."

Your new motherhood survival kit

Forget about the bright, pretty baby things - while you're in survival mode, all you'll need are the essentials.

More than 100,000 cars recalled globally after death of pregnant woman

The announcement of a mass recall comes as Malaysian police investigate the death of pregnant woman in July.

I had a 'good baby' but still suffered from postnatal depression

I had a much wanted precious baby girl, a 'good baby' who slept well, self settled and was mostly content. It just seemed implausible to think I could succumb to depression.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Win one of 5 Little Tikes Cozy Coupe Sport

Australia?s No 1 selling car is now available in a Sports model and we have 5 to give away to some lucky Essential Baby families.

Join PADDINGTON on the red carpet!

To celebrate the release of PADDINGTON, we are giving five lucky winners the chance to win a family pass to the exclusive Australian Premiere in Sydney on December 7!

Knowing you are one of the lucky ones

I am secure, confident and strong, but the responsibility of protecting my children can almost bring me undone.

Why I am so emotional now I have kids?

There are so many ways in which parenthood changes us as women, but one of the most noticeable, for me, has been the changing state of my emotions.

Baby survives despite sharing womb with 'foreign body'

Baby Maia was conceived against the odds, only to find she was sharing a womb with an ominous "foreign body".

Video: Baby shows dog how to jump - or vice versa

They say dog is man's best friend, but this playful pooch seems to have chosen a jumping baby as her number one buddy.

10 ways to soothe a crying baby

New paernts can get frustrated when their newborn gets fussy and can't settle down. When you're feeling overwhelmed, try some of these simple tips to help soothe your baby.

20 baby names that are becoming more popular every year

The data-lovers at nameberry.com have been at it again – this time, they’ve discovered the names that are continually rising up the ranks, ready to take out some top spots in the next few years.

10 great meals to make for new parents

Ideally, you want to give food that isn’t expensive to make, isn't too difficult to create, and freezes well; stews, bakes, soups and pasta sauces are perfect.

'It's not you, it's me': Boston bombing survivor mum to have leg amputated

Rebekah DiMartino is going through a break-up. She even wrote a farewell love letter. But it's not to her husband.

What it's like to go through early menopause

In a cruel twist, Carla had been breastfeeding and perimenopausal at the same time. But she's far from the only one to go through menopause early.

Restaurant served alcohol to two-year-old

Busy restaurants can be forgiven for getting food and drink orders mixed up from time to time, but not when the confusion leads to a two-year-old being served an alcoholic cocktail instead of the child-friendly beverage they ordered.

Julia Morris tells of miscarriage on a flight

Julia Morris has spoken about the devastation of suffering a miscarriage while on an international flight.

Woman's survival after birth 'a story of two miracles'

A US mother is home and tending to her new baby less than a month after surviving without a pulse for 45 minutes.

Eating ice may give mental boost to the iron deficient: study

A new study proposes that, like a strong cup of coffee, ice may give those with insufficient iron a much-needed mental boost.

Tiny lives in caring hands: Thank U NICU Day

Each year in Australia, over 40,000 newborns need the help of a special care nursery or neonatal intensive care unit. One day a year, the staff are honoured by the parents they help through those dark days.

I paid $50,000 to have a girl

This time my husband and I hadn't taken any chances. We had paid $50,000 and travelled 13,000 kilometres to make sure the baby growing inside me was female.

Weird pregnancy products

Some pregnancy products come to market and are just awesome. Others just leave you scratching your head.

Dear firstborn, I'm sorry

Being a first-time mum is tough for so many reasons – particularly because you really have no idea what you're doing.

A trace of sesame could kill my son

Helen Richardson son's had two anaphylactic reactions in a month. It's traumatic for everyone.

When you know before the test says yes

It wasn't a pregnancy test or missed period that told me I was pregnant with my second baby; it was too early for those things. A doner kebab told me I was going to be a mum again.

What not to do when your partner is in labour

Robbie Williams stole the show during his wife Ayda's labour, pretty much demonstrating everything on the "what not to do when your partner is in labour" list.

Best maternity swimwear and beach cover-ups

Thinking about a tropical babymoon but have nothing to wear? Here are some great swimwear and beach cover-up options for mums-to-be.

Dad breastfeeds his babies

Trevor Macdonald has now been pregnant twice, and is successfully breastfeeding his newest family member.

 

How many weeks til Christmas?

On your To-Do list

Get the "Santa" shopping done without the kids in tow.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.