20 year debt with family plus interest

cannugec5

Has the parent taken out a loan in their own name and passed on the proceeds to the OP? Are they ‘charging’ the amount they themselves are having to repay for the loan?

ButterflyZ

cannugec5 said:

Has the parent taken out a loan in their own name and passed on the proceeds to the OP? Are they ‘charging’ the amount they themselves are having to repay for the loan?

They get money through a broker for numerous different things so charges what the broker amount is. However, through the years this was never mentioned up until the last year 

ButterflyZ

Slinky said:

I wonder if the family member actually realises just what a high percentage that £200 is.  They might be mortified if they knew. Or maybe not. The lower the debt goes, the worse that percentage is.

(As an aside, should the 'interest' be declared and taxable?)

I know. All this aside I would like to get it cleared at some point. Is there anything I can suggest to help clear it?

MeteredOut

ButterflyZ said:

Slinky said:

I wonder if the family member actually realises just what a high percentage that £200 is.  They might be mortified if they knew. Or maybe not. The lower the debt goes, the worse that percentage is.

(As an aside, should the 'interest' be declared and taxable?)

I know. All this aside I would like to get it cleared at some point. Is there anything I can suggest to help clear it?

I think you've already been given the only advice you can be given (unless you want to stop paying it) - speak to your family and explain the difficulty you're having. I'd think a parent would/should understand that.

Sea_Shell

ButterflyZ said:

cannugec5 said:

Has the parent taken out a loan in their own name and passed on the proceeds to the OP? Are they ‘charging’ the amount they themselves are having to repay for the loan?

They get money through a broker for numerous different things so charges what the broker amount is. However, through the years this was never mentioned up until the last year 

Can you elaborate on this?    

Will they be in financial trouble if you don't pay them back?

Are they ultimately on the hook for this cash owed to another party (lender/company etc).

Rather than them lending from own savings that were "spare".

Hoenir

ButterflyZ said:

Although I am grateful to this close family member for lending me this, I also believe they shouldn’t have done as I have never been in a position to realistically pay it back. 

You could have declined the offer. If you don't pay them back they will be heavily in debt themselves. 

ButterflyZ

Sea_Shell said:

ButterflyZ said:

cannugec5 said:

Has the parent taken out a loan in their own name and passed on the proceeds to the OP? Are they ‘charging’ the amount they themselves are having to repay for the loan?

They get money through a broker for numerous different things so charges what the broker amount is. However, through the years this was never mentioned up until the last year 

Can you elaborate on this?    

Will they be in financial trouble if you don't pay them back?

Are they ultimately on the hook for this cash owed to another party (lender/company etc).

Rather than them lending from own savings that were "spare".

I have no interest in ‘not paying them back’. It’s the interest I am trying to stay away from. That’s increased without agreement. I am after any financial advice that there could be in order to pay off my debt without interest. 

born_again

ButterflyZ said:

Sea_Shell said:

ButterflyZ said:

cannugec5 said:

Has the parent taken out a loan in their own name and passed on the proceeds to the OP? Are they ‘charging’ the amount they themselves are having to repay for the loan?

They get money through a broker for numerous different things so charges what the broker amount is. However, through the years this was never mentioned up until the last year 

Can you elaborate on this?    

Will they be in financial trouble if you don't pay them back?

Are they ultimately on the hook for this cash owed to another party (lender/company etc).

Rather than them lending from own savings that were "spare".

I have no interest in ‘not paying them back’. It’s the interest I am trying to stay away from. That’s increased without agreement. I am after any financial advice that there could be in order to pay off my debt without interest. 

Given this is a family loan & as such not regulated in any way. Then no one can give any official financial advice. (Forum does not allow anyway)
As many have said you have two options.
Stop paying with the relationship risks. Or Talk to them saying that you can no longer afford the repayments & £200 a month interest, is way over the odds on the loan.

But is this a loan they took out on your behalf & you are paying that back, or is it just money lent from their own savings?

As many say never lend to family & friends. It is a world of pain.😶‍🌫️

Sea_Shell

Also, have you been paying off ANY capital, or just the interest?

Have they ever given you a "statement", even verbally?

marcia_

ButterflyZ said:

Sea_Shell said:

ButterflyZ said:

cannugec5 said:

Has the parent taken out a loan in their own name and passed on the proceeds to the OP? Are they ‘charging’ the amount they themselves are having to repay for the loan?

They get money through a broker for numerous different things so charges what the broker amount is. However, through the years this was never mentioned up until the last year 

Can you elaborate on this?    

Will they be in financial trouble if you don't pay them back?

Are they ultimately on the hook for this cash owed to another party (lender/company etc).

Rather than them lending from own savings that were "spare".

I have no interest in ‘not paying them back’. It’s the interest I am trying to stay away from. That’s increased without agreement. I am after any financial advice that there could be in order to pay off my debt without interest. 

 Money transfer credit card if you could get one