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Loan from my parents - payback ideas

135

Comments

  • NHS_worker_bee
    NHS_worker_bee Posts: 193 Forumite
    2bak860 wrote: »
    @27col - its a gift from my parents that I'm paying back over time.

    If it was a gift then you shouldn't have to pay it back?

    If it was actually a loan and you said it was a gift on the mortgage application, you may struggle to get a loan for this purpose (i.e. when the bank asks you what you want to borrow £25k for) because you've effectively said on the mortgage application that this £25k belongs to you when actually it belongs to your parents...
    Total debt March 2014: £11,194. Now £4,198.
    0% CC1: [STRIKE]£2,240[/STRIKE] £0. 0% CC2: [STRIKE]£1,934[/STRIKE] £0.
    0% CC3: £0 0% CC4: £4,198.
    12.9% Loan: [STRIKE]£3,000[/STRIKE] £0
    14.9% HP: [STRIKE]£1,103[/STRIKE] £0
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    2bak860 wrote: »
    @27col - its a gift from my parents that I'm paying back over time.
    Then it's not a gift, it's a loan. Gifts aren't paid back - that's the nature of gifts. Did you declare it as a gift on your mortgage application?
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    ringo_24601 wrote: »
    Pay a few hundred quid to get them a will written, with a clause in it stating that £25k of their estate will be not taken by you due to the loan.

    Sorted!
    Not sure if serious.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Holiday Haggler
    Gaz83 wrote: »
    Not sure if serious.

    Yup, serious. I knew my grandma had £10k marked out per grandchild in her will, so I went to see her and told her that we'd much rather her see us get use of it whilst she was alive.. Being a sensible grandma she agreed and we made very good use of it.
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    ringo_24601 wrote: »
    Yup, serious. I knew my grandma had £10k marked out per grandchild in her will, so I went to see her and told her that we'd much rather her see us get use of it whilst she was alive.. Being a sensible grandma she agreed and we made very good use of it.
    You went to your Gran and said "See that £10k you're going to give me when you die, go and just give me it just now?"
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • pelirocco
    pelirocco Posts: 8,275 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    ringo_24601 wrote: »
    Pay a few hundred quid to get them a will written, with a clause in it stating that £25k of their estate will be not taken by you due to the loan.

    Sorted!

    (I actually did this with my Grandma, its more of a verbal agreement but it was worth the punt)

    I refuse to borrow money from my parents as I don't want anything hanging over my head. They can either give me stuff, or I'll sort it myself.


    Slightly cheeky to expect anything from anyones will .......even parents
    Vuja De - the feeling you'll be here later
  • 2bak860
    2bak860 Posts: 86 Forumite
    Tenth Anniversary Combo Breaker
    Yeah - not going to go down the inheritance road.

    Got the point on the loan - thanks.

    Payment schedule and increased repayments I think are the answer. If I uped it to £450 per month, then it would be complete after 5 years.

    Thanks for all your replies - it's good to hear other points of view.

    thanks,
    Business borrow WAS £12,000 Now £10,200 | House deposit WAS £20,000 Now £10,943.33 + £15,368.55 of Interest at 5%
    Purchase CC 0% WAS £180 Now £145 | Balance Transfer CC 0% WAS £1,153.48 Now £1,788.84
    Total debt WAS £58,269.15 Now £41,949.72
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Holiday Haggler
    Gaz83 wrote: »
    You went to your Gran and said "See that £10k you're going to give me when you die, go and just give me it just now?"

    Yeh, kinda, but I used nicer words. What's money when you can give your grandma 2 cute great-grandchildren who get to live in the house she helped to buy?

    I do stand on my rule to never borrow from family though. They can give me it though.
  • Clive_Woody
    Clive_Woody Posts: 5,968 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    2bak860 wrote: »
    Yeah - not going to go down the inheritance road.

    Got the point on the loan - thanks.

    Payment schedule and increased repayments I think are the answer. If I uped it to £450 per month, then it would be complete after 5 years.

    Thanks for all your replies - it's good to hear other points of view.

    thanks,

    Uping the payment definitely strikes me as the best solution. Money creates too many problems between friends and family and you can hopefully avoid that situation and in 5 years time this will be a huge weight off your mind.
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • onerickylambert
    onerickylambert Posts: 42 Forumite
    Kinda your parents fault, if money is lent to family it should be done so with the knowledge that it might not be paid back and the lender should be happy with this or not lend in the first place. If you can't pay them back, tell them so and that they have to accepted it

    Fed up of final demands, whining relatives and Debtors' Prison?

    Wonga - Your soul is ours! :mad:
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