Money Moral Dilemma: Who should I pay back first?

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Former_MSE_Nick
Former_MSE_Nick Posts: 463 Forumite
I've been Money Tipped!
in Marriage, relationships & families
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?
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  • scotsbob
    scotsbob Posts: 4,632 Forumite
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    Grandma.


    Poor old biddy, living on a pension, winter fast approaching, she gets repaid first.
  • Flanno713
    Flanno713 Posts: 3 Newbie
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    100% straight to grandma, no second thought about it!
  • *Robin*
    *Robin* Posts: 3,364 Forumite
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    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
    esuhl Posts: 9,409 Forumite
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    It depends who needs the money most. If neither brother nor grandma need it back, pay off part of the overdraft.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
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    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.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • cazpost
    cazpost Posts: 109 Forumite
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    Who needs it back most urgently? Or give £50 each to Granny and Brother.
  • Piggywiggy
    Piggywiggy Posts: 452 Forumite
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    Don't borrow the money in the first place!
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    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.
  • pollypenny
    pollypenny Posts: 29,394 Forumite
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    Pay the person who is likely to need it most. If their finances are roughly equal pay them equally, keeping £100 as a safety net for yourself.
    Member #14 of SKI-ers club

    Words, words, they're all we have to go by!.

    (Pity they are mangled by this autocorrect!)
  • Person_one
    Person_one Posts: 28,884 Forumite
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    How is this a moral dilemma?
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