Loan for home improvement?

foxy-stoat

Emily_Joy wrote: »

Well, I myself and many other stoozers are not in a big rush to pay off 0% purchases cards, as I prefer the money to sit in my accounts earning 5% interest instead. But when I needed a friend to rescue me, I paid him back the next day.

If I had a hat, I would doff it to you. Dont assume your friend will do you the same, she has already messed around one lender.

Emily_Joy

foxy-stoat wrote: »

If you want to help her save some money, tell her to get a balance transfer card, to reduce the barclaycard 18% interest - she NEEDS to overpay that though as she wont clear it before the 0% interest rate runs out.

Wait, the barclaycard is always paid in full. It's old loan with current balance £1600 that has 18% interest.

foxy-stoat wrote: »

As for the 10% car loan - leave it where it is and hopes that she doesn't have a total loss in the next 4 years. Only way to save here would be to sell the car, clear the loan and buy a cheaper run around.

She wont get a 3% interest rate, whether you give her a couple of grand or not. 6.9% loan isn't bad.

OK, will look into that and make sure it is not wasted!

foxy-stoat

Emily_Joy wrote: »

Wait, the barclaycard is always paid in full. It's old loan with current balance £1600 that has 18% interest.

OK, will look into that and make sure it is not wasted!

My error - so she just wants to save on 18% interest on a loan balance of £1600, saving just £20 a month IF she got a 3% interest loan.

dealer_wins

Only "lend" her money as a gift. Because you wont see it back again trust me!!

jonesMUFCforever

Not in the UK was all I needed to read - don't lend her a penny (or cent)!

Emily_Joy

jonesMUFCforever wrote: »

Not in the UK was all I needed to read - don't lend her a penny (or cent)!

Please can you elaborate?

phillw

Emily_Joy wrote: »

You sound definite I was almost convinced that she might actually be more enthusiastic about repaying me because of our friendship.

How do you know she won't use the argument that because you are friends then you should cut her more slack when she can't pay?

Are you willing to sue her and make her bankrupt? Or apply to go on Judge Rinder?

You would need a water tight loan agreement.

Emily_Joy wrote: »

She says that she wants to get a further loan for a home refurbishment - to fix the consequences of the burst pipes and to replace the windows, approximately £7500 for 5 years, with the idea of selling the house subsequently. The house is not in UK, but in EU.

Where is the house? Is she going to do the work and then sell it? What is the likelihood of that? Why do you feel the need to get involved?

Emily_Joy wrote: »

I feel that with such a salary one should be able to pay more towards the existing debts?.. Or am I too optimistic?

Yes you are too optimistic, you can't fix her. Only she can do that.

Emily_Joy

phillw wrote: »

How do you know she won't use the argument that because you are friends then you should cut her more slack when she can't pay?

Are you willing to sue her and make her bankrupt? Or apply to go on Judge Rinder?

You would need a water tight loan agreement..

In this case the easiest way would be to hire her to do a job for me (which she is good at).

phillw wrote: »

Where is the house? Is she going to do the work and then sell it? What is the likelihood of that? Why do you feel the need to get involved?

The house is in a small town in Denmark. The plan is indeed to do the work and to sell it. The likelihood... not great, I admit. She did help me a few times but not financially.

phillw wrote: »

Yes you are too optimistic, you can't fix her. Only she can do that.

I don't want to fix her. My question was whether am I right in thinking that her income should allow her pay debts or I am too optimistic and most people really have much higher outgoings than I do.

MallyGirl

Everyone has different ideas on spending. I see so many people on here who claim to have pared spending to the bone but still have Sky, Netflix, gym membership etc.
Don't give her any money you aren't prepared to lose - and be prepared for it to affect your friendship when she doesn't pay you back.
Why didn't she have insurance to cover burst pipes?

Emily_Joy

MallyGirl wrote: »

Everyone has different ideas on spending. I see so many people on here who claim to have pared spending to the bone but still have Sky, Netflix, gym membership etc.

That's right. So I am trying to understand whether it's me being unreasonable and £1700pcm are simply not enough or she would benefit budgeting lessons.

MallyGirl wrote: »

Why didn't she have insurance to cover burst pipes?

The insurance was invalidated as the house was unoccupied for a long time.