Organising a Loan with a Friend

Mirno

There is a relatively unknown feature on windows calculator (Windows 7 at least) that will calculate mortgage/loan repayments.
Open calculator, click view, worksheets mortgage.
Fill in the amount - £6000, zero for the down payment, 1 year term, 3% interest - payments of £508.16 per month.

Fiddle with the figures as you need.

Mirno

dealer_wins

Mirno wrote: »

There is a relatively unknown feature on windows calculator (Windows 7 at least) that will calculate mortgage/loan repayments.
Open calculator, click view, worksheets mortgage.
Fill in the amount - £6000, zero for the down payment, 1 year term, 3% interest - payments of £508.16 per month.

Fiddle with the figures as you need.

Mirno

Wow never knew that. Very slick!!

Mr_F_Dorsetty

leespot wrote: »

I got that information from this forum. Not my problem if it is 'utter rubbish'.

No, actually it is your problem because you repeated it without validating it's probity.

This is why my advice to anyone about anything technical whether it be about cash, loans, cars, divorce, house maintenance or any other subject - NEVER take advice from an internet forum, people mostly talk half truths, Chinese whispers or outright garbage.

Now it is fine if they want to talk garbage, it's a free country allegedly, but if people take it as gospel then it is not fine.

As for the OP... if you like your friend and wish to keep them as a friend - do not do it. Even if you repay the loan as I am sure you intend to, it will change your relationship, it can't not.

DigForVictory

One additional cost may be a codicil to your Will in case you go under a bus.

Lioness_Twinkletoes

There is a thread on here written by someone who lent their brother £35k. He didn't repay it.

Still, you are the one that stands to benefit if you default, so no worries there, eh?

leespot

Mr_F_Dorsetty wrote: »

No, actually it is your problem because you repeated it without validating it's probity.

This is why my advice to anyone about anything technical whether it be about cash, loans, cars, divorce, house maintenance or any other subject - NEVER take advice from an internet forum, people mostly talk half truths, Chinese whispers or outright garbage.

Now it is fine if they want to talk garbage, it's a free country allegedly, but if people take it as gospel then it is not fine.

As for the OP... if you like your friend and wish to keep them as a friend - do not do it. Even if you repay the loan as I am sure you intend to, it will change your relationship, it can't not.

The bottom line of my advice is still the same in any event. Do not do it. Can't be any clearer really.

ViolaLass

I've lent money three times, once to a friend and twice to family. We're in the middle of the third time, which is going to plan, and the other two were paid off entirely as planned. I liked being able to help people who were otherwise going to pay a lot of interest and accepted the risk.

Yes, it can go wrong. So can life. Sometimes it's nice to help, if you can.

DCFC79

Lioness_Twinkletoes wrote: »

There is a thread on here written by someone who lent their brother £35k. He didn't repay it.

Still, you are the one that stands to benefit if you default, so no worries there, eh?

And theres a whole other thread dedicated to lending money to friends and family.

goodolddad

On a similar vein, my son is £45K in debt and I want to give him the money to pay it all off as I have over £60K saved.


My total assets including my house are just under £300K so I don't believe inheritance tax would come into things if I die but are there any other things I need to take into account?

Mr_F_Dorsetty

goodolddad wrote: »

..... but are there any other things I need to take into account?

Your business entirely of course and this is certainly no interference in that.

My wife and I are very generous people as well with our now adult children, if they need help and we can do it, we will.

Our son wrote his car off through being less than sensible shall we say just after Xmas 2013. He needed help, we bought him a car. But, if he did something similar again then he'd be on his own and he knows it, because you have to learn from your mistakes.

You do not say what form the debt takes but if it were my son with say £45k in unsecured debt then somewhere in there we'd need to know that merely bailing him out doesn't create him even more problems.

We all realise we won't be around forever and in our minds a part of being a good parent is knowing when to say yes and when to say, no; no matter how old they are.

Ultimately you can't fight their battle for them and shouldn't try to.