HELP with working out my loan money

stagshorn

HELP ANYONE? I am such a dumbo I can't work this out - I borrowed £10k from a bank and gave it to my son. Then when I sold my home I paid off the entire loan from the house sale money. My son says I have now paid out twice, once to him (the loan) and once back to the bank. BUT as the loan was not my money in the first place it was borrowed from a bank, surely I have only paid out once when I paid off the original loan? I can't get my head round it, can anyone with a brain tell me which is right?

27col

It sounds to me as if it is your son that has the problem, not you.
You borrowed some money from the bank.
You gave it to your son.
You paid back the loan to the bank.
How is that not easy to understand.
The only thing that needs to be explained is whether the money that you gave your son was a loan or a gift.
If it was a loan, then he owes you £10k.
If it was a gift then the whole matter is closed, because you have repaid your loan.

[Deleted User]

What on earth has your son been smoking?

You borrowed the money and you've paid it back to the bank. Anything you did with the money you borrowed - gave it to your son, bought a car or spent it on on the world's biggest bag of Haribo is neither here nor there.

ViolaLass

You borrowed £10k from the bank and have paid it off. You have also lent £10k to your son who has not (according to your post) paid you back.

stagshorn

I got the loan, he got the gift!

ViolaLass

Then perhaps your son needs to spend a little time on his financial/mathematical education.

Big_John_246

Can I phone a friend. :doh:

David301

Sounds like your son thinks money grows on trees

bsms1147

By his logic you paid off the loan when you gave the money to him.

Mentalz.

Gaz83

Your son is an imbecile.

Here to help.

MuffinTops

The bank loaned you £10,000. So at that point you were £10,000 in credit but also owed £10,000 to the bank to pay that loan.

You gave your son £10,000. At that point meaning you were £0 in credit and owe £10,000 to the bank to pay the loan.

You then paid £10,000 to the bank. Now you're 0 in credit and 0 in debt.



Although you've personally paid out 2 amounts of £10,000. You were also given 1 amount of £10,000 from the bank (which you then gave to your son). Making it just £10,000 of your money that you've ultimately paid out.

Hopefully that clears it up for you both.