Lent to Family - Advice needed!

Gra76

paddyrg wrote: »

I don't mean to sound like a meanie, but unless you have fixed dates and amounts, this is likely to ride... Have the short, earnest discussion now, it will only get harder with time.

This, absolutely this. With such a large amount at stake you can't afford for there to be any 'misunderstanding'. If you let it ride out for a few months it'll become more difficult to bring it back up again and the person you lent it to may decide they'll pay it back how they want, not how you want.

If possible get them to set up standing orders. If it's an interest free loan (which is what the 'bank of Mum' gave me) then how long are you prepared to wait for the final balance to be paid off? Even over 5 years that's more than £416 a month. I'm assuming they can make that because I wouldn't want to be kissing goodbye to that kind of money for any longer.

If you don't set a payment schedule you'll end up asking for it everytime you see the person, who will eventually get frustrated at being asked all the time and it could potentially blow up in your face.

Do the hard part now, now later.

Set the terms now before it's too late and ask them to set up regular standing orders.

RichGold

BiltonBabe wrote: »

the sum involved is £25,000

Utter madness.

Tell them your circumstances have changed and/or you've had a change of heart and you'd like them to repay it before they spend it.