advice on lending to family

Caz3121

could you maybe offer practical budgeting help. Rent is a priority (keep a roof over their head) I assume there must be other debts not paid..this could be never ending unless they learn to manage their money

dealer_wins

Too many sensible probing questions, OP long gone lol

System

DottyM01 wrote: »

I want her to repay the money I will lend her and the money she owes me from previously. So I think some type of legal contract is needed, one that means I will have legal recourse should she not repay all the money loaned.

Not possible. You can only make up a contract for any future loans, you cannot make up a retrospective one for money you previously lent.

If you lend her money you won't see it because she has nothing to pay you with. If she had enough money to meet her living costs she wouldn't be in rent arrears would she? How can she pay you back if her outgoings are currently more than her income before you add your loan repayments on top? Even if you had a loan agreement it would get thrown out for the same reason many payday lenders have had to refund customers - you lent money to someone you know couldn't afford the loan.

buythedip

What is the partner up to in all of this?

Missus_Hyde

DottyM01 wrote: »

I have lent money to my niece in the past and none has been repaid............

...........I know it would be wiser to not lend the money but there are children involved.So please no comments about not lending it.
many thanks

I'm not sure what answers you expect to receive, if you don't want to be told not to lend the money in the first place.

Surely to lend more money to someone who obviously has no intention of paying it back is sheer madness; if you must bail her out (and I would strongly suggest that you don't) then it would be far better to gift her the money, as has been previously suggested. Of course, that won't solve the problem of helping her with her ongoing finances, unless you subsidise her and her family for the rest of their lives. :huh:

zippygeorgeandben

When the going gets slight tough, let's go to dear old auntie to bail us out. You think you're helping but you're really really not.

Blackbeard_of_Perranporth

Give her £10, and tell her to ...

DottyM01

Thank you everyone for your replies. You are right, if I give the money realistically I am not going to get it back. She sees me as a soft touch.

System

You need to draw a line in the sand. No doubt you can see obvious signs of the way they waste their money. They are the masters of their own situation, they caused themselves to be where they are now, you've bailed them out in the past and they've shown no interest in being willing to change their ways. You're their aunt, not their parents. Tell them to ask their parents for the money.

As an aside, it is a good idea to never let family know how much money you have. Makes it much easier to say no.

forgotmyname

Sadly that will be the case in future. They know you will bail them out.

Think of the children... What you wont know about is when get get a bit of money and squander it away and wont save. No need you will be there to pay the bills for them.

Seen it in my family. They drink they smoke they get some money and buy 60" TV's (several times) which soon gets sold or into the pawn brokers and never reclaimed.

Save... They wont have heard that word. Thats what other people do, no need someone close will bail them out (again).