What interest rate would you charge your family?

Wutang_2

Oldernotwiser wrote: »

Well, at least two of us realise the snag in all this.

Agreed, certainly not wiser

Mojisola

Look at it from the other side - if I was in debt and my son or daughter offered to give me the use of a lump sum so that my interest payments could be drastically reduced, I would be very grateful for the offer. I would also insist that they didn't lose out on the deal and would want to pay them the interest they would be losing and a bit more.

Gromitt

Mojisola wrote: »

Look at it from the other side - if I was in debt and my son or daughter offered to give me the use of a lump sum so that my interest payments could be drastically reduced, I would be very grateful for the offer. I would also insist that they didn't lose out on the deal and would want to pay them the interest they would be losing and a bit more.

That, to me, would be fine.

But the person offering the cash stating that they want interest on the money borrowed would not be.

System

Gromitt wrote: »

That, to me, would be fine.

But the person offering the cash stating that they want interest on the money borrowed would not be.

So you agree with the interest on loan to my Mum then?

linkpaker

Personally, i would not acquire anything off of our mummy however i may understand a person attempting to shield your hard earned money. You are not conversing a few hundred lbs. Precisely what monthly interest may be the income earning at this time? Should you ought to charge, why don't you merely demand what you would lose instead of cash in on the idea

malcolmffc

-100% interest is what you deserve

Gromitt

berbastrike wrote: »

So you agree with the interest on loan to my Mum then?

Read my post again. It is not correct for you to request her to pay interest. However, if you offered the money stating that it was interest free but she insisted on paying you a reward for the loan of the money (fixed amount, interest, etc), then thats fine.

System

Gromitt wrote: »

Read my post again. It is not correct for you to request her to pay interest. However, if you offered the money stating that it was interest free but she insisted on paying you a reward for the loan of the money (fixed amount, interest, etc), then thats fine.

That's the same thing at the end of the day.

BoGoF

berbastrike wrote: »

That's the same thing at the end of the day.

No it's not, you stating at the outset you want x amount is different from her giving you a bit extra at the end as a thank you.

Mojisola

I really don't understand why someone who has been careful to save should lend the money to someone who has spent beyond their income and forfeit the interest the money would earn for them.