Loan help

Gaz83

charliecc wrote: »

She has already said she's willing to sign an agreement between us both.

Again, why? Why can't she just repay the loan? What difference is it to her whether she pays money to Amigo or money to you?

I would take her comments about being willing to sign an agreement with a very large pinch of salt. It would be far easier for her just to continue paying the loan - which she wasn't willing to do.

Candyapple

gaz83 wrote: »

again, why? Why can't she just repay the loan? What difference is it to her whether she pays money to amigo or money to you?

I would take her comments about being willing to sign an agreement with a very large pinch of salt. It would be far easier for her just to continue paying the loan - which she wasn't willing to do.

↑↑ THIS.

You still didn't answer the question of what makes you think she will pay you when she screwed her own son over?

Gaz83

Also worth pointing out that she had an agreement with Amigo that she didn't think twice about ignoring.

eddddy

Hi charliecc

I think I can see the point you're making - to make sure, I'll try to summarise it by using a fictitious loan amount of £1000.


- Your MiL has borrowed £1000 from Amigo at 49.9% APR.

- Your OH is guarantor.

- Your MiL has defaulted. So effectively, your OH is lumbered with paying off £1000 at 49.9% apr.

- You have a good credit record, and can probably get a loan at a much lower APR (lets say 15%).

- So you are proposing getting a loan at 15% APR to pay off the loan at 49.9% APR?


(And whether your MiL ever pays you a single penny back or not, you will still be better off.)

If that's a fair summary, it does seem to make sense for you to take out the cheaper loan.

charliecc_2

Candyapple wrote: »

↑↑ THIS.

You still didn't answer the question of what makes you think she will pay you when she screwed her own son over?

Yes, she may not always be paying the Guarantor loan and therefore I know that means not me either, but either way my household is paying for it anyway and we are lumbered with it!

If I pay the loan off, then at least I know the value will not keep rising up and up with the APR high rate. Even if it gets paid every month, there's still interest getting adding on. That's the point I am trying to get over here.

charliecc_2

eddddy wrote: »

Hi charliecc

I think I can see the point you're making - to make sure, I'll try to summarise it by using a fictitious loan amount of £1000.


- Your MiL has borrowed £1000 from Amigo at 49.9% APR.

- Your OH is guarantor.

- Your MiL has defaulted. So effectively, your OH is lumbered with paying off £1000 at 49.9% apr.

- You have a good credit record, and can probably get a loan at a much lower APR (lets say 15%).

- So you are proposing getting a loan at 15% APR to pay off the loan at 49.9% APR?


(And whether your MiL ever pays you a single penny back or not, you will still be better off.)

If that's a fair summary, it does seem to make sense for you to take out the cheaper loan.

Yes it is like that, only I am not getting a loan to pay it off, I already have the money sat in the bank and I don't need it for anything else at the moment ( I have other savings I could use for rainy days ).

TriathNanEilean

charliecc wrote: »

Yes it is like that, only I am not getting a loan to pay it off, I already have the money sat in the bank and I don't need it for anything else at the moment ( I have other savings I could use for rainy days ).

Then you and your partner will do better to pay off his mother's loan using that. Check first about any early repayment charges - it may work out cheaper to pay it off in stages, leaving the last payment as a small one, though I doubt that but worth checking.

eddddy's post was good advice. Other posters seem to be treating the loan as your MiL's responsibility but if your OH is a guarantor then, in effect, it is his loan.

Two last things: all that assumes that you and your OH are one financial unit. Only you can judge whether you personally want to help him out here. And lastly, if you & OH pay off the loan you might have to accept that you will never get anything back from the MiL no matter what agreements you get her to sign when you do it. If she doesn't have any money there is little recourse for you.

My sympathies.

Candyapple

What did she spend the money on just out of curiosity?

Did your partner discuss being a guarantor to his mum with you - if so, what were your views on this?

I presume if she had to resort to using Amigo that you knew she was a high risk and probably wouldn't pay back the money, so what was your original contingency plan in this event?

Are you and your partner married? If no, what if he leaves you and refuses to pay a penny towards you taking over their loan?

How much money was borrowed?