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I need cash. Borrow against the kids savings?

Discussion in 'The Lounge' started by newyorkin, Feb 24, 2006.

  1. newyorkin

    newyorkin 1 ton status

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    I'm trying to work out a way I can pay off a loan 3 years early, and still buy a truck. If I don't tap money I have put away for the kids, I can't buy a truck (or not more than a $1k truck).

    If I tap the kids money, it may take about a year, but I can pay it back with the same monthly payments we'd have been making on the loan.

    There's just something fundamentally wrong about borrowing from their pot, breaking promises I swore to myself unless we hit a dire critical need. There's no dire need, I just want to pay off the loan and save a couple hundred in interest. It's our only actual debt aside from house and utility/insurance bills. Oh yeah, and my wife's credit card...Hmm, I haven't seen a statement for that in a long time...


    Or, anyone know of any good rust-free 90 or newer pickups for a grand? :)
     
  2. pauly383

    pauly383 Daddy383 Staff Member Moderator

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    Suze Orman would say , let the kids put themselves through college . It sounds awful though .
     
  3. 8_YOUR_H2

    8_YOUR_H2 1/2 ton status

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    They are kids. Take the $1000 and give them 200 pennies, they will be extatic, I promise. I do it all the time.
     
  4. chevyfumes

    chevyfumes Court jester

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    :haha: :haha: :haha: This thread is funny....
     
  5. wasted wages

    wasted wages 3/4 ton status

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    401k ??

    Do you have a 401k --borrow from that,,you will basically be paying yourself back with interest,,
     
  6. Leper

    Leper 1/2 ton status

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    Don't touch the kids money. You will regret it forever.
     
  7. Jagged

    Jagged 1 ton status

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    What about using the account as collateral? Take the money, put it in a long term CD, then borrow against it. That cash makes better interest, and you probably get a decent rate on the loan.
     
  8. justinf

    justinf 1/2 ton status

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    Is this money that the kids can touch? If not, I say go for it, but pay it back in full with monthly payments, in addition, be sure to pay back a set amount decided by you, over and above the amount you borrowed, that is more than the interest the money would have earned in interest had you not touched it. It is a win win situation for everyone, you save the interest on the loan, get a truck, and the kids money earns a better return than if you hadn't borrowed against it.
     
  9. Stickseler

    Stickseler 3/4 ton status

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    Borrow from the kids and pay it back with interest. But if there like mine, don't tell them, mine reminds me all the time when he lends me money and he gets 50-100% interest, nothin like a 3.00 slurpie
     
  10. dontoe

    dontoe 3/4 ton status GMOTM Winner

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    There's a nice looking primered '86 K-5 for $1800.00 OBO near me.
     
  11. cbbr

    cbbr 1 ton status GMOTM Winner

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    That is an excellent plan. They earn a few bucks in interest. You get the truck - its a win/win.
     
  12. boggerless

    boggerless 1 ton status Premium Member

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    you know what to do,bro.and like wasted wages said,borrow if you need to. RATCH:D it's cool
     
  13. 4by4bygod

    4by4bygod 1/2 ton status

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    Ratch.. go ahead and borrow the money.. think of it this way.. how much MORE could you be putting away for them, if you didn't have the loan payment being a drain every month.

    if you are disciplined enough to stick to the repayment plan, you'll be fine.

    Tom
     
  14. newyorkin

    newyorkin 1 ton status

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    I'm gonna go ahead and borrow it to pay back with interest. Thanks for that thought.

    I figure if I borrow from it paying back at $10 a month more than our monthly loan payment, they will get back $150 MORE than if I let their money just sit and collect interest in a cd or savings account.
    In the end, I'm still paying less because I'm only paying $120 ($10 higher payment x 12 months) "interest", and it's going to my kids, not a finance company.

    To answer the question, no, the kids don't know about the money. And yes, they're going to pay for their own college... I'm trying to save this cash for them at first, then give it to them when they're looking at thier first house and need a $1million downpayment for a 2 bedroom cape... Or maybe just stop contributing to it in a few years and let it sit in a mutual fund til I die and they go through my stuff and find it...

    I was going to teach them about interest today. Maybe not, though, I don't wanna be buying $3 slurpies...

    Thanks for the replies all. :thumb:
     
  15. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    the only way I would be willing to do it was if I set up an automatic deduction from my pay/checking that went into the kids college $. If its not automatic/outside your control, its much more likely you'll decide to "skip" a payment... or pay late... or some other excuse. After all, the kids aren't going to report you to a credit bureau are they? :) :thumb:

    j
     
  16. newyorkin

    newyorkin 1 ton status

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    Yeah, definately I agree. I will have the money direct-deposited to a checking account that the ing savings account can automatically pull the payment from.
     
  17. Can Can

    Can Can Pusher Man Staff Member Super Moderator

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    How much cash are you talking about, Ratch? I mean, with interest rates where thay are at right now, a $10K loan only costs about $50 a month in interest.

    Kim and I have a credit line sitting at about $10K right now. We're putting every extra cent into it and it should have it paid of within 10-12 months. Overall interest charges are only going to be about $380......

    If you can qualify for a home equity line of credit, they are usually sitting at prime +/-. And once you have the initial loan amount paid off, the LOC remains open, just in case you need access to cash down the road.

    How are things, anyway. Long time no chat, brother.....:frown1:
     
  18. Thunder

    Thunder 3/4 ton status

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    Yup go for it. I will send you one of my bumperstickers.
    [​IMG]

    Acually I pay for my kids Collage stuff like Tuition, classes, books, ect thats the cheap part. They have to pay for everything else.:D
    Also have some money set aside for them to help them on lifes way once they get their head out where the sun is shining and get a life.. I have borrowed, used, and reinvested that money many times.
     

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