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

Loganberry1

I would suggest to her, if she can, that she get a credit card with 0% on purchases. One with a long 0% deal. The benefit is that she gets the money with no interest, she is improving her credit score and can pay a variable amount each month, or calculate what she needs to pay to repay in full by the end of the 0% rate. You can always offer to be there as an emergency at the end of the deal if you want to. It would also mean she will really consider how much she can afford. If you are considering charging her interests it sounds like you are not entirely happy with losing the interest on your savings. I would also suggest you should talk it through with her. If you are looking at this relationship as a potential long term or forever type deal then talking about money issues now would perhaps be wise. If you have loads saved and she does not then you may have quite different ways of dealing with finance already.

ajr77

I needed a new car in a rush after my old one broke down once too often. I didn't have the money to hand so my OH lent me the money. I paid him back, no interest was charged. It did take me a month longer than originally we'd verbally agreed but he didn't mind because he could see I was paying something every month and I'd nearly paid it by then. I think it depends on how much trust you have in your gf. I can see the point of view of the people that say "get a legal agreement" to safeguard you, but if you feel you need to do that, then I would say don't lend to her. It just seems too formal between partners. In that case, get her to get a loan from a bank or something instead.

Jessii1990

Perhaps going against what has already been discussed but my boyfriend loaned me some money to buy a car. I had saved up half of the amount I needed but as we were moving further away from my work place I didn't have time to save up the rest as I otherwise would not be able to get to work!

In total he loaned me £3500 in 2013 and I have this month paid him back the full balance. He's never asked me for interest on the car but I would have been happy to pay it if he did. In reality for me I wouldn't have been able to go back to work if he had been unable to loan me the money and I know for that I will be eternall greatful.

I think you need to think about all the possible ways this could end, do you believe your likely to get all the money back, how much interest would you be losing, is there any possibility they won't pay you back or you may split up? if your comfortable with them and they are going to pay it back perhaps some kind of agreement would be useful? If you have any doubts about loaning the money then I would not do it.

onomatopoeia99

If I lend money to a friend I treat it as a gift, if I get it back it's a bonus.

Prothet_of_Doom

I've just bought a car, in a rush, because my old one would have cost £1500 to get fixed.

So £950 got me a 3 owner 54 plate Mk4 astra 1.6 16V with 33K mile on the clock. I figure that this will last me 4 years. I'll put £30 a month away in my savings to pay for the next car.


My daughters reaction to this car? It's uncool. Not quite as embarrassing as some of the cars I've forced her to travel in.

So. If anyone asks you for a loan to buy a car, ask them in detail what car they intend to buy, and if it's more than £1000, and if it's not slightly unfashionable, then they are buying more than transport. If they are not slightly embarrassed by the car they are buying, you definately should not be giving them a loan.