Money Moral Dilemma: Should I charge my girlfriend interest for a 'loan'?

John_Gray

If she can't afford a car, why not buy her a reasonably-priced bike?
You can tell her that it will give her a different sort of exercise...

Mjkpio

No. I'd feel that was unfair if there was a genuine reason for her to have a car and she could only afford it if you helped.

My girlfriend has just made the decision to quit her job and take a training year, for which not only will she not be paid, but she has to pay a student loan for (further increasing the student loan she already has).

The only reason this is a possible solution for her is because I am willing and happy to support her through the year covering all household/travel costs and bills. It does mean that this year will be tight, and saving for a house will go on hold, but I know it'll help her in the long run.

On the other hand you need to discuss:
- why does she need a car?
- why can't she afford it herself?
- can she get a cheaper car?
- how much is the loan and for how long?
- do you see yourselves being together for that long?!

silverswan

Mjkpio wrote: »

No. I'd feel that was unfair if there was a genuine reason for her to have a car and she could only afford it if you helped.

My girlfriend has just made the decision to quit her job and take a training year, for which not only will she not be paid, but she has to pay a student loan for (further increasing the student loan she already has).

The only reason this is a possible solution for her is because I am willing and happy to support her through the year covering all household/travel costs and bills. It does mean that this year will be tight, and saving for a house will go on hold, but I know it'll help her in the long run.

On the other hand you need to discuss:
- why does she need a car?
- why can't she afford it herself?
- can she get a cheaper car?
- how much is the loan and for how long?
- do you see yourselves being together for that long?!

Where were you when I was looking for a boyfriend?
Never having been in the position to loan money to anyone, I don't think I would loan it, but as someone who has had cheap cars that got me from A to B, if it's so important to the GF in this dilemma, I'd buy a cheap car about £800 with a view to upgrading it in 2 or 3 years if I was in a better financial position.

sugarbaby125

NO INTEREST. If you can potentially afford to gift her a car, then that is how you have to look upon a loan for such a large amount of money. So if you give her the money do so with no talk of interest being lost and with a glad heart, or keep your money in your savings account.

K8ee

Best answer yet.


My husband and I are building a house. My father offered a loan, and we were going to take him up on it. I recommended an account which would pay him the best interest which he took up. I would have paid every penny of the interest as it would have saved me the cost of taking out the mortgage. Luckily it seems we will be very unlikely to need the loan, but I wouldn't have wanted to profit from my parents. They probably wouldn't have minded, but I would.
How come she isn't offering to pay you the interest?

K8ee

My advice....buy the car yourself in your name, you maintain it, pay the tax on it and insure her as a driver of it. If she wants to leave the car is yours. I'd then ask her to pay a contribution towards the running costs of it as anyone in a couple would do with the finances being shared....but as long as she fills it up with petrol and helps pay for her fair share of the household bills including these bills then I think you don't need to ask for any more.


Best answer yet (sorry - didn't manage to include it in my previous answer)

moneyistooshorttomention

Good God no - she's your partner (male to female at that - and she might be just a little "old-fashioned" in that respect....).

There were a couple of occasions where something noticeable cost wise was needed unexpectedly (ie few hundred £s worth) a few years back and both times the boyfriend of the time (a different one on both occasions) offered me the loan of money to cover it. I duly took them up on their offer - and paid them back promptly. The question never arose of interest being chargeable - it certainly didn't even cross my mind. I don't think it crossed theirs (though one of them turned out in the end to be a bit on the mean side...:cool:). But the mean one loaned me money a 2nd time (when another low-cost - ie several hundred £s - emergency cropped up with the semi-jokey comment of "I know your credit is good"). That is - I had paid him back promptly the first time - so he trusted me to do so the second time too (which I did).

DandelionPatrol

Ebenezer_Screwj wrote: »

f you are not comfortable with lending her the money, just say you don’t have it.

If you are not comfortable with lending her the money, don't fob her off with a fib. Just say no, you are not comfortable. Fobbing off with a fib which may get found out is not a good foundation for a relationship.

Any

Depends on what sort of girlfriend is it. Ie how serious.
If you don't live together and are not looking into getting serious-then I wouldn't even lend larger amounts.
If you live together-if my OH tried to charge me interested on a loan (he paid for one of my courses) while I was working, studying and still looked after house, cleaned, shopped, cooked and ironed I don't think we would be married for the last 8 years...
it worked the other way round Later on. He needed deposit on company car and I had cash.
What goes around comes around..

Prothet_of_Doom

How much does she want to spend ?

I know where she can get a 1990 honda concerto giffermatic, in beige, with low miles, full dealer service history and 1 owner from new for £300.

If I were you, I'd offer to buy her a similar vehicle, as long as she helps you maintain it, and on the condition that she give it back when she no longer wants it. Or tell her she can "rent" it off you at 10p a mile. - Bill her weekly.

If you know where to look, there are 100's of sub 500 quid cars that will last 3 or 4 years with a bit of TLC.