What ES says is undoubtedly the best financial solution. But for me while (clearly from my record) I don't mind owing money to banks I've never had any from family, and the few times I've lent money to family (true emergencies and my credit rating being better than theirs - but that's a different story) I've always felt a bit miffed that they weren't taking repayments seriously (although I did get them). So maybe all I am asking is just to check that everything is still OK with the lender - who knows what they may be putting on hold - even though I am sure they are delighted to be helping
I have never borrowed from family either Mark88 so I agree that in the interests of family harmony some sort of repayment plan should be agreed. Whenever we have lent to family with the idea of it being repaid (which is not often although we do gift money) we arrange a repayment plan there and then in case it gets forgotten. It is more awkward borrowing money from family I think and for that reason we have shied away from that.
I think you are right that a plan to repay should be made but extending their secured debt to cover that is not to be encouraged unless family want it all back at once and even then I would lean towards 0% money transfer cards although £30k is a lot to raise that way. As far as I can see from OPs debts though they have more than a year before the TSB credit card deal expires so paying £210 a month would get that cleared by 09/21 so clawing back £70 from the £280 they are currently paying. The M and S loan has a decent amount being repaid each month and is a fairly low interest rate so I would leave that too. The Nat West credit card has 18 months to go so maybe set the payments just above minimum until the M and S loan is gone and start as I say paying £250 or £500 to the family loan and set an amount to emergency savings at the same time. Once the TSB card and the M and S loan is gone throw everything at the family loan and the Nat West credit card and it will be gone with very little interest paid.
Early retired in December 2017. Debt counsellor for a High Street bank in a previous life.
I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
I have moved this to the DFW diaries section for you.
Early retired in December 2017. Debt counsellor for a High Street bank in a previous life.
I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
Thanks so much to everyone's recent engagement to my journey. I discussed with my father the repayment. I am due (in the next 6 weeks), to get a one off lump sum income. This will be used to clear the M&S loan and the TSB CC. I absolutely cannot wait to do that ... so excited. This should leave the Natwest CC balance of 10k [0% until Oct21], and family loan of 30k. I will wait and see, but I should have around £2500 each month to put towards these. I plan to pay 1k a month towards NW, and £1500 a month to my father, and then £2500 to him after 10 month, meaning I should clear the family debt in 16 months after I get the cash lump sum. He is happy with that as he's retired and would consider additional to his pension, and would prefer it to getting 30k lump sum. So ... looks like the plan is in place..... just got to keep going with it.... as with all the DFWBs .... long hard slog, let's keep going.
... and thanks ES for moving my thread to the correct place.
DFW. £59k debt cleared in 2017. £25k debt cleared in 2019. Then bought a house, and got £70k new debt in 2019. Total of £154k unsecured debt, with now £34k left to clear. Aiming for Nov 2022 debt free date.
Sounds like you have a good plan and the lump sum will come in handy. Don't forget to focus on saving for emergencies etc as well as pay off the credit card and family loan. That means you should not have to resort to credit in the future. 16 months until you are debt free then?
Early retired in December 2017. Debt counsellor for a High Street bank in a previous life.
I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
I think I saw you in an ice-cream parlour/Drinking milk shakes cold & long/Smiling & waving & looking so fine 2022: Weight-loss 3/20kg, Steps 39.3k/3000k Total Debt 01/22: £54.5K -- Mortgage Neutral Pot:£31.9K/£86.4K - EF:£1.5K/£10K
................ 16 months until you are debt free then?
... thats the plan .... hold me to it!
DFW. £59k debt cleared in 2017. £25k debt cleared in 2019. Then bought a house, and got £70k new debt in 2019. Total of £154k unsecured debt, with now £34k left to clear. Aiming for Nov 2022 debt free date.
Little update. More ebaying, and gumtreeing .... it's amazing the stuff people will buy from you .... can't wait for payday.
M&S loan £8234 2.96% repaying £1140 / mnth
TSB Credit Card £3104 0% til 09/21.............280 /mnth
Natwest Credit Card £10674 0% til 03/22
Family loan £30k Total: £52,012
DFW. £59k debt cleared in 2017. £25k debt cleared in 2019. Then bought a house, and got £70k new debt in 2019. Total of £154k unsecured debt, with now £34k left to clear. Aiming for Nov 2022 debt free date.
TSB Credit Card £3104 0% til 09/21.............280 /mnth
Natwest Credit Card £10644 0% til 03/22
Family loan £30k Total: £51,982
DFW. £59k debt cleared in 2017. £25k debt cleared in 2019. Then bought a house, and got £70k new debt in 2019. Total of £154k unsecured debt, with now £34k left to clear. Aiming for Nov 2022 debt free date.
Replies
I think you are right that a plan to repay should be made but extending their secured debt to cover that is not to be encouraged unless family want it all back at once and even then I would lean towards 0% money transfer cards although £30k is a lot to raise that way. As far as I can see from OPs debts though they have more than a year before the TSB credit card deal expires so paying £210 a month would get that cleared by 09/21 so clawing back £70 from the £280 they are currently paying. The M and S loan has a decent amount being repaid each month and is a fairly low interest rate so I would leave that too. The Nat West credit card has 18 months to go so maybe set the payments just above minimum until the M and S loan is gone and start as I say paying £250 or £500 to the family loan and set an amount to emergency savings at the same time. Once the TSB card and the M and S loan is gone throw everything at the family loan and the Nat West credit card and it will be gone with very little interest paid.
I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
Save £12k in 2022 challenge #36 0/£12,000
I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
Save £12k in 2022 challenge #36 0/£12,000
I discussed with my father the repayment. I am due (in the next 6 weeks), to get a one off lump sum income. This will be used to clear the M&S loan and the TSB CC. I absolutely cannot wait to do that ... so excited.
This should leave the Natwest CC balance of 10k [0% until Oct21], and family loan of 30k. I will wait and see, but I should have around £2500 each month to put towards these. I plan to pay 1k a month towards NW, and £1500 a month to my father, and then £2500 to him after 10 month, meaning I should clear the family debt in 16 months after I get the cash lump sum. He is happy with that as he's retired and would consider additional to his pension, and would prefer it to getting 30k lump sum. So ... looks like the plan is in place..... just got to keep going with it.... as with all the DFWBs .... long hard slog, let's keep going.
... and thanks ES for moving my thread to the correct place.
I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
Save £12k in 2022 challenge #36 0/£12,000
2022: Weight-loss 3/20kg, Steps 39.3k/3000k
Total Debt 01/22: £54.5K -- Mortgage Neutral Pot:£31.9K/£86.4K - EF:£1.5K/£10K
Total: £52,012
Total: £51,982