Money Moral Dilemma: Who should I pay back first?

Former_MSE_Nick · 24 September 2015 at 1:07PM

This week's MoneySaver who wants advice asks...

I owe a few people money - my brother nearly £900, my grandma around £300, and I've reached my (0% interest) £1,000 overdraft limit. I've run into a bit of cash recently - £500 in fact - who should I pay back first?

If you haven’t already, join the forum to reply!

[threadbanner]box[/threadbanner]

scotsbob · 30 September 2015 at 2:00AM

Grandma.

Poor old biddy, living on a pension, winter fast approaching, she gets repaid first.

Flanno713 · 30 September 2015 at 2:13AM

100% straight to grandma, no second thought about it!

*Robin* · 30 September 2015 at 2:58AM

MSE_Nick wrote: »

This week's MoneySaver who wants advice asks...

I owe a few people money - my brother nearly £900, my grandma around £300, and I've reached my (0% interest) £1,000 overdraft limit. I've run into a bit of cash recently - £500 in fact - who should I pay back first?

Not enough information!

Which personal loan was taken out earlier, and how soon did this [possibly fictitious] Money-saver promise to repay each generous relative?

Is Grandma living on a state pension - or well-off, a higher rate tax payer?
Does Brother have a great career with plenty of disposable income?

Has Money-saver got a job, anything extra to put into their own overdrawn a/c this month (and how long will the 0% interest deal run for)?

..With answers to the above questions, we'll have a better chance of suggesting a fair apportionment.

esuhl · 30 September 2015 at 5:09AM

It depends who needs the money most. If neither brother nor grandma need it back, pay off part of the overdraft.

HappyMJ · 30 September 2015 at 5:16AM

The correct way to repay creditors when you have nothing and come into something is to divide the amount you have proportionally between all of your creditors.

cazpost · 30 September 2015 at 6:56AM

Who needs it back most urgently? Or give £50 each to Granny and Brother.

Piggywiggy · 30 September 2015 at 7:10AM

Don't borrow the money in the first place!

Pixie5740 · 30 September 2015 at 7:56AM

Since we don't know who you have owed money to the longest. I suggest you keep £100 (you're at your overdraft limit and you don't want to go over, accrue charges and take even longer to pay your brother and gran back) and then give £200 each to your brother and gran.