Loans to family

shorty1988m

Ok. So, for a 23 year old i am pretty comfortable with money. The only debts i have are for a laptop and a camera (to get my credit rating up) and i have a well paid, tax free job.

My parents on the other hand are not so money sensible. They have debts that they can't afford and constantly moan that they have not enough money. I would love to help but feel like they need to educate themselves on spending instead of me just giving hand outs into a bottomless pit. Instead of putting money aside week by week to save they constantly spend it on stupid things. I feel a need to help out parents but do not want to be held back in my ambitions by their spending. Also, while i always would look after them i don't want to be stuck settling debts when they are too old to do so.

Recently, i was asked by my dad if they could borrow 1000 pound to go on holiday. They would pay me back 200 pound per month. Now, i don't really have any issues with this and have no qualms about asking for the money back if they don't pay and my money is pretty much just sitting there anyway but i can't seem to get the point across that a holiday is neither needed nor will it do their financial status any good.

What is everyone else's thoughts on this? Would you lend?

MandM90

I would lend them petrol money to drive to the seaside on a sunny weekend (if we get one) and gently suggest they sort out their debts before racking up more.

I think, after reading so many threads on family loans gone wrong, lending irresponsible people 1k of your money is only going to come back to bite you in the bum and cause resentment - even if they are your parents.

whitewing

No, definitely do not lend to them.

My dad has money off my aunt, would have money off anyone who was silly enough to give them it. He never gives it back. He is completely dreadful with money but worse with his sense of entitlement.

whitewing

Incidentally, how can your job be well-paid and tax free? That doesn't sound right.

Apples2

How come they haven't been saving £200 a month for the last 5 months?
If it's because they didn't have it spare to save, how come they will have it when they return?
What about spending money? Do they have it or will it be plastic fantastic when there?

I think you already know you are unlikely to see it again so consider it a gift, otherwise you may have a big fall out over it.

But NO, it is not a good plan and completely unnecessary.

shorty1988m

whitewing wrote: »

Incidentally, how can your job be well-paid and tax free? That doesn't sound right.

The joys of working for a billionaire and being out of the country for 9 month a year.

I know i will see the money again...eventually. They are aware i am not the most forgiving person when it comes to this and have made it blatantly clear that not giving it back could be a relationship killer.

MandM90

I still wouldn't give it to them. Whether or not they pay it back is immaterial; you're just helping them pile on another debt and, as you said, it won't help them learn that you need to earn money, then spend it, not the other way around!

krlyr

They don't need a holiday and therefore they don't need helping out. They may want a holiday and want your £1000 on loan but it's not a life or death, keeping-a-roof-over-their-heads situation. Personally, I wouldn't lend the money, even if you get the money back (eventually), what lesson will they have learnt? That you'll sub them money for next year's holiday, probably.
My mum and stepdad moan about not having spare cash but they can afford Sky+, the odd holiday, etc. - they don't have tons of cash to splash but they're not strapped for it either. They'd never expect any of us kids to loan them anything for something as non-essential as a holiday, they'd just cut back in other ways.
Up to you, but that's just my opinion.

barbiedoll

If you can afford it, why not tell your dad that you will pay for half of the holiday but he has to save up for the other half?

If he can't manage to do that, then you know that he won't be able to repay you if you lend him any money. On the other hand, the incentive of a gift may encourage him to save for his half, it could be a way to get him into the savings habit.

I wouldn't lend him the money, if you don't get it back, it may damage your relationship with your parents forever. Being bad with money doesn't make them bad people and it would be a shame to lose them for the sake of £1000.

claire16c

If they can afford to pay you £200 a month, why dont they start saving that now and go on holiday in October then? Or why havent they been doing it for the past 5 months?

Im sorry but a parent shamelessly asking their child to fund their own holiday...

Dunroamin

shorty1988m wrote: »

The joys of working for a billionaire and being out of the country for 9 month a year.

I know i will see the money again...eventually. They are aware i am not the most forgiving person when it comes to this and have made it blatantly clear that not giving it back could be a relationship killer.

Either a wind up merchant or a psychopath!