20 year debt with family plus interest

Sea_Shell

ButterflyZ said:

Sea_Shell said:

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

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

Yes I’ve been paying back and re borrowing over the years. Every penny is documented. The percentage of the loan is a grey area as the amount is news to me within the last year 

From your end or theirs?   You said there wasn't anything in writing.

A "little book" of payments and extensions could be evidence of the loan(s) if needed.

You need to get them to agree to a reduced (or removed) level of interest... unless they are having to make repayments at this level to someone else.

Maybe you can clarify this point.

Purplelady65

I am just wondering why your parent has been borrowing money to then lend to you? Do you have a poor credit rating so were unable to borrow money? Did you ask them to take out loans in their name? If they are being charged 8% interest on the loan then I think you need to look at how you can increase your income and also reduce your spending so you can make bigger monthly payments as it’s a lot of money to owe to a parent who has borrowed the money for you. If you’ve been borrowing money from them for 20 years then this won’t have helped in terms of learning to budget. Would you say you have good budgeting skills now as you haven’t borrowed anything for a year or is this an area you could focus on with a view to reducing spending? 

DE_612183

Sounds like in order to reduce / remove the interest the parent needs to discuss with the broker - otherwise the interest debt will just rack up against the parent.

Have you tried taking out a loan in your name to clear the whole amount - then at least you can manage the thing yourself.

A personal loan for 30k could attract interest of about 6-7% - maybe less if you can secure against an asset.

As others have said - the only other option is:

Increase Income and Decrease Spending.

Can you take a 2nd job? Can you sell any assets?