Borrowing from a friend

Justlookin_2

Big problem in a few words

Borrowed from a friend over a period of about four years. Let's say the total is 25k. Repaid money over time in instalments which come to, for sake of argument, £30k

However, the friend claims around £10k still due as the money provided to me came from credit cards and loans some of which were high interest.

I feel morally wrong stopping payments but also find it hard to keep going when I have in essence repaid the money advanced to me (and then some)

Is it right to say that any agreement between the banks and my friend is between them. I cannot be legally responsible for that interest and charges. Though I may be morally responsible for them.

It's a difficult situation as they did help me but it seems I'm never going to get out of this and as another friend said 'what if they got the money from a loan shark'

I'm prepared for the flames.

zippygeorgeandben

Was this an oral agreement or was anything written down between you and your friend?

Proxy89

Were you made aware the source of this borrowed money? - If not then I don't believe you are morally liable to pay it all back but I do believe that a diplomatic solution should be reached as this was a risk that you were both involved in and should see it out together until it is finished.

Voyager2002

Do you want your friend to end up worse off because he helped you?

Obviously he isn't rich, because he had to borrow the money that you needed. Good that you have repaid, but obviously it cost him a fair amount to get the money to help you. After all, no commercial lender would have given you (or anyone) an interest-free loan...

[Deleted User]

Ask the friend for all the statements and details of the loans etc, then you will know if they are trying it on, if they can't provide said documents then just walk away

bengalknights

Agree with Venison here just ask for the statements for the loans and credit cards

Gambler101

I think your "friend" is trying it on. If you overpaid by £5K, thats more than enough, and he should have pre-warned you about the total amount he will expect back beforehand anyway.

enthusiasticsaver

I would be inclined to ask for evidence of that too. Presumably you did not ask your friend to borrow money to give to you? If you have paid £30k on a debt of £25k that is 20% interest over the 4 years. If he or she borrowed the money on high interest cards or loans then probably yes this will not have covered it. Why did you borrow the money from your friend rather than a bank?

JJG

What was your agreement about repayment with your friend? Repaying £30k over four years from a £25k loan is about 9.7%Apr equivalent.

PeacefulWaters

JJG wrote: »

What was your agreement about repayment with your friend? Repaying £30k over four years from a £25k loan is about 9.7%Apr equivalent.

And credit cards are often more expensive than that.

I believe the friend's numbers.

ThePants999

I don't - how exactly does one get £25,000 in cash from credit cards?

If the friend was seriously using expensive finance in their own name in order to provide this loan, it was crazy and stupid of them not to have any kind of agreement as to the repayment terms. Did they warn you in advance that they'd be borrowing/lending at double digit APR? If a friend tried to get me to repay £40k for borrowing £25k over four years, that would be the end of that friendship anyway, so I wouldn't cave just to maintain it...!