Should I ask my parents for money?

[Kerouactivist]

I know I am probably going to get flamed but, I was thinking about asking my parents for a loan of about 3,000 to pay off my credit card debit.

I plan on paying them back even with some interest (hoping for something like 3%).

I know they can definitly afford it, I just don't know if I should ask.

I just graduting college in december, and plan on going to graduate school in next fall, and no matter how I jiggle my finances each month I can just barely get away with paying the min. payment.

I have applied for one of those no interest for 12 months cards but, got denied because of a lack of credit history and I would assume because I already have two cards and only pay the min. payment every month on the cards I do have.

I just need to get out from under this debt at least until I'm outta school and making some decent money.

What should I do?

 

[bmacd]

it never hurts to ask, as long as you intend on paying it off.

-=bmacd=-

 

[ATLien247]

If I was your parent, I would simply say this:

"You made the bed, now you have to lie in it..."

 

[Kerouactivist]

Originally posted by: ATLien247
If I was your parent, I would simply say this:

"You made the bed, now you have to lie in it..."

Ahh the flaming begins

 

[notfred]

I wouldn't ask my parents for money unless I REALLY needed it, but that's me.

 

[PsychoAndy]

Prepare for the inevitable "You have to take care of me when I'm old" loan clause.

-PAB

 

[atrowe]

Originally posted by: ATLien247
If I was your parent, I would simply say this:

"You made the bed, now you have to lie in it..."

 

[Kerouactivist]

Originally posted by: PsychoAndy
Prepare for the inevitable "You have to take care of me when I'm old" loan clause.

-PAB

I will if I have to but, I think their are financially set for retirement.

 

[TomC25]

Originally posted by: bthorny

Originally posted by: PsychoAndy
Prepare for the inevitable "You have to take care of me when I'm old" loan clause.

-PAB

I will if I have to but, I think their are financially set for retirement.

Taking care of them would mean when they cannot help themselves around the house.

They could have money in the bank, but that won't help them to the toilet.

 

[Chaotic42]

It depends. Did you learn a lession from it?

My dad has co-signed 2 loans for me, and I just payed the rest of the 2nd one off today ($900). It feels good.

Throughout these experiences I have learned a very valuable lession about credit.

Just my 2 cents.

 

[Kerouactivist]

Originally posted by: Chaotic42
It depends. Did you learn a lession from it?

My dad has co-signed 2 loans for me, and I just payed the rest of the 2nd one off today ($900). It feels good.

Throughout these experiences I have learned a very valuable lession about credit.

Just my 2 cents.

I really think I have but, all but about a third of the purchases I made on the card, where stuff that I needed, food etc...

 

[andylawcc]

I am in a similar situtaion but minus the amount of debt.

and it seems like you needed the loan from your parents, but you are a college grad, you can make a good decision by yourself.


also, do not expect your parents to bail you out everytime even though they are rich or even filthy rich, it is your life that you will have to deal with, don't bring your burden upon others.

 

[Viper GTS]

I personally wouldn't.

I owe about $5K in CC debt, & while my grandparents probably would loan me the money I have no intentions of asking them for it.

It's a matter of personal pride, it's my mess & I'll get myself out of it.

$5K isn't that much when compared to my income, if I was actually in some kind of trouble I probably would ask. Right now it's more of an annoyance than anything else.

Viper GTS

 

[manly]

If you're currently paying a high APR on your consumer debt, I would definitely ask rather than continue to fork over high interest payments to predatory banks.

I don't see pride as being an issue. The real issue is if this is a long-term solution to your problem. A lot of young people with consumer credit problems will go through cycles of paying down or off their debt (often with outside assistance), only to build debt back up again. You have to have a very high confidence in yourself that that won't happen, otherwise you're just needlessly involving your parents in your own mess.

Maybe as part of any loan, you can hand over to your parents all your credit cards except for a card w/ a low credit limit (say $500 or less). Or hand them all over, and only use an ATM/debit card. If you don't have the cash on hand, then you can eat instant ramen noodles for the next month. ;/

In college, I was in a similar debt crunch but I managed to shoulder it myself by cycling the debt to whichever account had the lowest interest.

 

[Ryan]

Asking can't hurt.

But, I wouldn't. In fact, I wouldn't have been charging stuff on credit cards in the first place

 

[jlee]

If we paid the minimum payment to our Sears card, the balance would go up...high interest.

If you can transfer to a card with low/no introductory APR, you can pay as much as you can afford, without "wasting" as much money on interest. When the low intro APR runs out, transfer to a different card, if you can..

 

[Draknor]

Might as well chime in my $0.02...

Like Viper said - are you payments more of an annoyance, or are you seriously in trouble? It sounds like the former, in which case I, personally, would hesitate to ask my parents to help bail me out. Sure, it would save money on interest, but, experience has its price. I just finished paying off my credit card, which I had let rack up a lot more charges over the last six months than I really should have - and like you, most of them were things I needed - food, auto expenses, etc. But now that my credit card is paid off, I'm trying to use my check book more, and some of the things I thought I "needed" with a credit card, just aren't as necessary when I'm paying with real money.

Another thing you can do is call your credit card company & ask for a lower rate. I did this and they dropped my rate from like 11.99% to 7.99%, just like that.

If you do decide to go to your payments, my best recommendation would be to act as if your parents were a real bank, and write out in a contract just how much the loan is for, what the interest rate is, and what your monthly payments should be, and for how long. That'll keep you in a disciplined payback track, instead of "Oh, I'm a little short this month, I'll just try & make it up next month b/c my parents won't mind". Maybe even have a "late fee" or something. You might figure what's the point then - the point is to keep yourself financially responsible. But your parents would be more forgiving than a real bank if you did have some kind of financial emergency...

Good luck!

 

[wyvrn]

That totally depends on your parents. My mother would have loaned me the money after a short lecture on financial responsibility. She was always there for me when I needed her, and I always made sure I did what I said I would. If I said I would be home at midnight, I was home 1 minute early, etc.. I have worked since I was 10 doing odd jobs or in grocery stores, so I always showed personal responsibility. If you have a good relationship / past history with them, it's worth a shot.

EDIT: I agree with Draknor's suggestion. Presenting them a contract at the time you ask them should give them the impression you are serious about your responsibilities.

 

[Bleep]

There are a lot of questions to be asked.
Firstly how are you paying for your education? Did your parents foot the bill for this or did scholrships and working part or full time?
How many hours do you work a week? Do you belong to a Frat? If my kid asked me for a loan I would want a complete rundown of the finincial activities. Many children think that their parents have money when they do not. I raised 5 kids and went without a lot of stuff that I wanted so they could have stuff they wanted now if they wanted more they better by golly have a really good excuse for being in the hole. I would give them some food but no money.
Grow up and be a man solve your own problems, after all you made them.

Bleep

 

[GoingUp]

Did you run up the $3000 on stupid crap or was it legitimate items that you needed for living/school

My parents and I have talked it over and they are going to pay off my student loans and then I will pay them back. That way I can avoid all of the interest payments.

 

[MrPhelps]

Look, If you can't ask your own parents to borrow the money, Than how do you think you will negotiate a decent salary when you get out of college! The worst they can say is no.


I would have a contract that spells when and how much to be paid to show you're serious.

Good luck

 

[SCSIfreek]

I was in the same boat, but got my acts together and paid every single penny back with interest. lessons to learn in this.

DAMMIT my CC bill for last month was $5000 . I paid it off with a check though


--scsi