Question

So here is my scenario. I am helping my daughter in college pay off her credit cards. The only reason I am helping is because she lost her on campus job when the virus hit and she was sent home to finish out the semester. Since she has been home I have not allowed her to get a job due to the virus. So. she has two credit cards. Old Navy owes $154. 64 minimum payment $28 @ 27. 49% interest and a Discover card balance $958. 14 minimum payment of $36 and interest rate of 21. 99%. I have additional money of $135 this month. Should I go ahead and pay off the old navy card? Or put the most toward the old navy and leave it open with a small balance? She hasn't been reckless with her cards. Just trying to help her out in these strange times.  

Answer 1

Personally, I would only pay the minimum amounts right now (plus whatever the normal interest is). I know she is without a job at the moment (which I totally get) but in order for her to “get” the weight of buying things on credit, she needs to do it herself. Trust me, my parents bailed me out and unfortunately, while I was grateful, I did not learn to change my behavior because it didn’t cost me anything.  

Answer 2

I would pay the old navy one off

Answer 3

I would if you can but I would also take it. I personally would not pay off her cards but make a payment on them to keep them current for her. Help her by keeping her on track but I wouldn’t pay off her debt

Answer 4

Pay off old navy and put that min payment towards discover

Answer 5

I would say she can work at her local grocery store pay off debt and save for next semester. We need workers, especially at the grocery stores.  

Comments

@chronograph maybe the OP or her daughter are high risk. Maybe the health risk isn't worth the minimum wage paycheck  Not everything is about money.  

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@stidham it is when you have debts to pay.  

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@samson90485 Theodorou can't pay debt if you're dead.  And if you're lucky enough to just be hospitalized, you'll likely be in even more debt! This college girl has $1000 in debt and people are treating her like she's some irresponsible deadbeat. It's just a little ridiculous.  

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@stidham no I definitely get where the OP is coming from and sometimes it isn’t worth the risk but you also can’t say money isn’t everything when money is owed on credit cards and that’s just my opinion

Answer 6

Close the accounts!  

Comments

@chronograph closing is not good !  

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I personally feelnthat we have to teach kids to live without charge cards. Let her know to pay cash for het clothes in the future. Thrift stores, fb marketplace, etc. Credit catds have NEVER brought happiness to my life

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@sheeting5846 she is young enough that a bump in her credit report will be no big deal

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@errant Yeah but her credit age will get a bump once that card closes. I’m betting I’m close to her age, 22, and there’s nothing wrong with building your credit. Not everyone wants to live without credit cards. We balance ours very particularly so that we are always in a certain range. If you’re responsible they’re not an issue and it doesn’t always mean you’re living beyond your means.  

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Besides, it’s the daughters choice to keep or close the account. Not her moms.  

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@chronograph just because you can't handle a credit card doesn't mean no one can. Credit cards aren't meant to be about "happiness" for anyone, they are a legitimate credit building tool when used properly.  

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@chronograph technically she can’t close her acts. She’s in college.  

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@terrel You can close accounts when you’re in college. I don’t think that matters here. I’m in college and have never heard of that. Or do you mean the mom can’t?  

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Because her mom certainly cannot close those accounts if she’s not the primary holder.  

Answer 7

Leave the accounts open she'll need them for their age. I'd knock out the Old Navy and then make payments towards the Discover IF she was being responsible with them when she was working her job.  

Answer 8

If it was us, I would only be paying her debt with the agreement that no more debt. I’d pay off the old navy one and close it.  

Answer 9

Pay the minimum on the Discover card, put the rest towards the Old Navy account. Have her owe you the balance on both, and enter into a contract to repay you. You could even include an interest rate that starts once she’s working again.  

Answer 10

She is an adult. She should be paying you back when she gets a job. Even my 17 year old is still working, as is everyone in our family.  

Comments

@cleodell well, we don't know this families specific scenario. Maybe she or her daughter are high risk and the peanuts she'd bring home from a part time job isn't worth the health risks.  It's fine that your kid has been able to work, be thankful you're all healthy enough! Not every parent needs to be a hard*ss for their kids to a learn lesson.  

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@stidham wow! Not a hardass here lady, but an experienced parent. My point of saying she is an adult is that it should be her decision on getting a job, not her mother's. I have a daughter who is a RN, working in a hospital with covid patients. I know the deal.  

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@cleodell I was thinking the same when it says she has not allowed her to get a job.  

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I am actually at risk and she is still taking all of her classes online. So I would rather her be at home.  

Answer 11

Pay off so you save on that crazy high interest rate. Have her pay you back. My daughter lost her job as a life guard because gyms are closed. I won't let her work at a grocery store.  

Answer 12

My parents helped me, as well, when I wracked up debt in my college years. It saved me from feeling like I was drowning. Later, I went on a debt management program and it’s been great thus far. My parents paid mine off in lump sums and closed my cards. Took a hit on my scores, but I’m trying to build it up.  

Answer 13

Pay minimums and pay off Old Navy when able. Close the card if you think it could pose a problem otherwise they’ll close it later after a period of non-use.  

Answer 14

First off reach out to the school and have her apply for the Cares act grant since she is experiencing job loss due to COVID they can get her some grant money to help cover her bills. Next, if she lost her job or her job closed she should be applying for unemployment ASAP. At least pay the minimum on the cards until she gets some money in but as a student and a laid off employee she has some benefits at her disposal at least!  

Comments

@vampire we just got notified from the school that they will be giving her $787 back under the cares act for her room and board refund. I guess they base it off how much money she is paying on her own for school which is 31% the school is covering 69% in grants and scholarships.  

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@dorian79 yes they base it off the EFC that is how my school is doing it as well. Still see about unemployment as well she can get her partial wages + $600 a week and they will back pay her from the day she was laid off.  

Answer 15

That’s nice of you. Just a question, but can she apply for unemployment? I thought the federal program was for this. Just a thought. Yes I’d pay off the old navy. And I’d have her close her account.  

Comments

@pang her on campus job was supposed to start the week the school shut down and run through the summer. So since she had not started yet she is not eligible.  

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@dorian79 bummer!  

Answer 16

I think it's fine to help her, but maybe she can work for you in return? Extra yard work, deep clean e. t. c in exchange for you helping her pay it

Answer 17

Is she on unemployment? If she lost her job to covid she should be getting some sort of payment. If you’re going to pay it off I’d have her pay you back when she starts working or receives unemployment.  

Answer 18

You can pay off old navy and not close it. You don’t need to carry a balance on a card for it to be beneficial to your credit. One factor is how much debt you have vs how much you’re allowed (ie max limit on the card). I’d say pay off old navy and then you can put the extra towards your own debt or to her other card.  

Answer 19

You can pay off the credit card, its not as important to keep a small balance on the card to get good credit.  

Answer 20

I would pay off the Old Navy card. I’m going to disagree with many of the previous posters who are recommending closing the card. You said you are choosing to pay her debts because since she’s been home you have not allowed her to get a job due to the virus. Yes, perhaps she can collect unemployment due to losing her employment but it should not be the parent’s choice to close or tell their child to close their account. The daughter isn’t being irresponsible or refusing to work. The original poster doesn’t want her daughter to work at this time and has made the choice to pay her daughter’s debt as part of that agreement. Otherwise, it seems the daughter would look for employment and be paying her own debts.  

Comments

@oliy6 completely agree. The poster even said her daughter has not been reckless with her cards so I see no harm in helping her pay these while she is not working.  

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@oliy6 OP also said she wasnt letting her work because OP herself is high risk for catching the virus. I agree, pay the old Navy, then throw that extra money to the Discover. When she gets the school grant money, she can pay half to her Discover and save the rest.  

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Yes, it seems most people aren’t reading what the op wrote. She is making the choice to pay the debts so her daughter doesn’t have to work while living with her and risking the op’s health.  

Answer 21

I would pay off the Old Navy card and then snowball to put extra toward the Discover.  

Comments

I would also like to say, you are an awesome momma. I know we all have our opinions but you do you. We don't know the situation before all this and with the scenario you gave us I feel people should focus on the positive you are making in your daughters life. I'm a mom of a 12 yo and I'm pretty positive I would/will do the same thing.  

Answer 22

Do not ask her to close that account. Her credit age will take a hit which could be detrimental to her score, if she’s planning on getting a house or new car after college. -Do not comment under this talking about Ramsey, you don’t need credit to buy a house, or whatever else. Not everyone can or wants to live like that - Anywho, I’d pay the discover card down to get it in a better limit:balance ratio but make sure the monthly payment is being met on the Old Navy card. It’s so low now that I wouldn’t worry too much about it. Getting her Discover card to a healthy ratio is what will help her score the most.  

Answer 23

Yes pay off as much on the old navy as you can but still make the minimum payment on the discover card

Answer 24

Question, is her college disbursing CARES act funds to students? Check into that. The university I work at is doing that right now. Also, if she had a Federal Work Study Grant, they should be paying her regardless, but I know not all campus jobs are through the WS program

Comments

@railing4751 yes! I got mine last week from my university. They did not inform us at all until they started disbursing them.  

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@neighbor Yay! So good to hear <3 I was so upset the first CARES act excluded college students from the direct payments. So glad at least the funding universities did receive is now going out to students!  

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@railing4751 It was completely unexpected since I still thought we were excluded as well. I’m hoping other universities get the ball rolling and send the money out. I’m not sure about other schools but I got $1000!  

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@neighbor Yay! My understanding is that it was an application process for universities to receive CARES act funding, so that could mean some didn't receive it. Each school is distributing them differently, but we went by info off FAFSA to determine amounts for students!  

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@railing4751 I believe that’s what my school did too. I think it was a nice “sorry we messed up your learning process” apology from the government  

Answer 25

2-9% utilization is the suggested best for your credit profile and score. Depending on her balances maybe making a bit more than minimum payment would be best in her case. That way it doesnt put you in a bind (if it even would. Not trying to suggest anything, i swear) and it'll keep her up to date.  Thank you for helping your girl at this time. She appreciates it than you know, trust me.  keep up the amazing work, mama.  

Answer 26

I’m confused - if she is an adult, why do you say you have not allowed her to get a job? Seems like that is her decision. Also, would you have the authority to close her credit card? If she’s an adult, then you shouldn’t have authority over those decisions.  

Comments

@lean Kuhs I didn’t see her saying she was closing the cards. Just paying it off. Also, if my kids are adults and at home I’d also tell them no job right now. Their safety is worth more than anyone who thinks I do or don’t have a say in anything  

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She can’t stop her child from working but she doesn’t have to let her child move in with her either. Looks like the daughter is respecting her mother while living with her and the mother is choosing to pay her daughter’s debts so she doesn’t need to work at this time, allowing her to follow the mothers request without the financial consequence of unpaid debts. The poster didn’t mention closing the card, others in this post are saying they would.  

Answer 27

Pay the minimum payment on both cards. If you have less than 6 months worth of expenses in your emergency fund, hold on to the rest for now.  

Answer 28

Pay off Old Navy but leave it open. Better for credit.  

Answer 29

I would pay off the Old Navy card now. Does she have an additional $20 to pay off the old navy card completely? After that, you just have to focus on one card. And just an FYI, I would do the same for my daughter. I would consider it a gift and would help also.  

Answer 30

Just pay off old navy and put it away. Then roll the payments into paying off the other one. I paid off my ON and saved cash for clothes. I’ll use the card up to the cash I have and pay it back off so I’m not keeping a balance.  

Answer 31

Pay old Navy first

Answer 32

I’d go old navy. It’s the lowest balance with the highest APR. If you can squeeze the extra $20 from somewhere, i sat knock it out completely.  

Answer 33

I would pay double the minimum on both to keep her in good standing or minimum plus 10. 00, which ever you can afford.  

Answer 34

She is lucky to have you helping her. I don't blame you. these are strange times indeed. I'd knock out ON as many people have suggested. Don't close it, esp if she's responsible with it. Will she be putting the CARES money to are the other card? I'd take this opportunity to pay off everything she can if she doesn't have expenses right now.  

Answer 35

Pay off the old navy, and then move that payment toward discover.  

Answer 36

As someone who has much more credit card debt than your daughter, what I’m about to say, I say out of love. Any balance that can not be paid or afforded to pay by the end of the billing cycle is reckless. The fact that she has balances that are accruing interest means she has not been utilizing or spending the credit on her cards wisely. And that’s ok! She just needs to understand that unless she has every cent to pay the balance off before interest starts accruing then she can’t afford the purchase. Are the balances crazy high into the thousands/tens of thousands? No. But to have a balance period that she can’t afford to pay before the interest starts to accrue is in fact reckless spending. I’m guilty of it too! I would pay off the Old Navy card, leave card/account open, lock card up in a safe. Then use the minimum payment amount to go towards the discover along with any other money that can be thrown towards it to pay it off ASAP. Then start using the cards for SMALL purchases. Like for ONE pair of shoes (Old Navy) or ONE full tank of gas (Discover). Lock the cards back up until the balances are paid and the next month rolls around. Then she will understand how to responsibly use and pay on her credit cards. Again, coming from a loving place from someone who has been walking this debt journey for the last 10 years AND STILL struggling. I don’t want your daughter to be in my shoes when she’s 30  

Comments

@hardpressed  

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@hardpressed, we don’t know if the balance on the credit card is due to books. As someone who was in college I can relate to that. She did not asked to be judged. now Old Navy. not like she’s buying her clothes from Macy’s or Nordstrom.  

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@naseberry I’m not judging. I was a college student once too. Only I didn’t have a credit card because my score was too low. I stated twice that what I was saying was coming from a place of love. No judgment with that. Seriously. Yes I realize that my statement might’ve made some general assumptions. But it’s the message that I wish I would’ve heard at 20 when I did have credit cards/medical debt/etc. I WISH someone would’ve taught me smart financial habits. If someone had, then I wouldn’t be where I’m at, at the age of 30. Or my husband at the age of 38. There is nothing wrong with trying to help someone be financially smart. That’s all I was trying to do  

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@hardpressed I agree. Most likely she’s been paying only the minimum on that discover and the interest alone (which is crazy high) is not letting her pay it down. This is a perfect example and exactly what Miko/Dave Ramsey try to teach us. Don’t carry debt because if you do then this will happen. It’s not harsh it’s reality and sometimes reality is harsh. You’re right these are all things I wish I knew at a young age!  

Answer 37

She doesn’t sound reckless to me and I wouldn’t hesitate helping if I could (for my own family) it’s not like she’s intentionally not paying them. Lol I know my cc for books could easily hit 1k for ones I couldn’t rent. So those saying she’s reckless because there’s a balance we have no idea what she needed it for. I would pay off old navy but leave it open. Throw that money towards discover in the upcoming months.  

Answer 38

Is she not getting the stimulus unemployment? If she hasn’t applied she needs to ASAP and she needs to call her credit cards and see if they will lower the rate due to covid.  

Comments

@mauser her job was supposed to start the week that school closed down and run through the summer months. So she doesn't qualify

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@dorian79 ummm that is unfortunate. If she hasn’t double checked, I would definitely have her verify that she doesn’t qualify. Def pay the highest interest rate first and have a talk with her about budgeting and being responsible. “Don’t count your chickens before their hatched” comes to mind. Even though she had good intentions to pay it back once she got paid, she made purchases without having the money. Though I wouldn’t say she was reckless, I do think she can learn from this.  

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@dorian79 they have new eligibility requirements now for unemployment I think you should still look into it! Unless it was her first job? It doesn’t hurt to try the only thing they will say is yes or no. Tell your daughter not to feel bad you can’t predict these things.  

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@vampire she is filing out the unemployment application now since she got a letter from the school stating her job was terminated due to the virus.  

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@dorian79 great!  

Answer 39

Pay the minimums on both of the credit cards, then put whatever money you have left toward the highest interest card (Old Navy).  

Answer 40

My god there are some harsh comments on here, the poor girls lost her job and been sent home from college her worlds probably slightly upside down and her mums helping her out as any parent would I think it’s lovely of you. She’s told her mum and hasn’t hidden it and worked up fees in no payments. I’d pay minimum on the credit card and clear the old navy but maybe come to an agreement that that one isn’t to be used again  

Answer 41

You’re and awesome mom! Keep doing what you’re doing! I am sure your daughter appreciates you being supportive of her during a time her whole world being turned upside down. Definitely make sure the minimum is paid on both cards. If you can, I’d pay off Old Navy, with the understanding that she shouldn’t use it again until she is employed and able to make the payments. Then help her whack away at that Discover card.  

Answer 42

Pay off the Old Navy.  

Answer 43

I think I would pay off the credit card but tell her she has to pay you back by watching TBM budgeting videos with you. Not as punishment but as a help. You could work out a rate, like we have to spend 5 hours over the next week watching videos and working on your budget. Help her to get fired up by seeing what a budget can do for you! :)

Comments

@septempartite this is a great idea!  

Answer 44

Pay it off and close it. I wish as a college student I had never opened credit cards.  

Answer 45

Contact her school financial aid office. There is likely some funding to help her. If she is eligible, it would given directly to her and she can use it for these COVID related expenses.  

Answer 46

Snowball- pay old navy off first

Answer 47

Pay old Navy xxx

Answer 48

Old Navy and take the card