Lending money to friends & family

harryhound

nickb_2581 wrote: »

hi. hope this is the right place to post this.

I have a chap that owes me over a grand for vechile hire but wont pay up. I want him to agree to a repayment scheme and was wondering if anyone is aware of any template documents available for this??

many thanks

What are you going to do when HMRC bankrupt him?

cdixon1041k

This is unfortunate, but it looks like the board has given excellent advice.

-Chris

lovel01

Yes, friends are friends. When they are in need we want to help them. I remember telling myself "I will keep my friends" But also, we need to advice them to seek guidance and help from companies that offer financial help. But we can also let them enjoy things like games.It's fun to help and let them feel they are loved.

harryhound

If you are a banker don't expect to be loved.
People will promise the earth to get a loan and then get all resentful when asked to pay it back.

moneymouth77

I still think it's most important to type everything up, or at least have a small contractual thingie just saying how much you owe and when you'll pay it back. Obviously only on huge amounts, but you know, the person you're lending it to will understand!

maz1964

harryhound wrote: »

If you are a banker don't expect to be loved.
People will promise the earth to get a loan and then get all resentful when asked to pay it back.

oh boy you really have read my thoughts,, im so sorry to say this is what my friend is doing, getting all defensive and keeps promising stuff, and i now realise if i ever get it back its a bonus, but time will show #

but above all i now feel resentful towards her for using manipulative reasoning and for me for falling for it and not thinking like a Banker ,,,,,

ive really learnt my lesson, and i feel i wished id never have become friends with this person as i would not be in the trouble financially im in now

heed all those of you were want to help your friends, i now realise there are other ways to help, via other organisations etc and to support them with time and help but never with money unless you can really believe it wont matter to your friendship should you never get it back

take care maz

mrsbudget

hi, do u think it is okay to apply for credit card to help a relative who is in debts so that he can balance transfer all his debts and just pay it through direct debit,,i really want to help him,,but just thought thats the only i can help,,using my name to apply for credit card or tesco loan and putting all his debts in place. He has a very low credit rating and therefore could not get any decent loan.

thanks

maz1964

mrsbudget wrote: »

hi, do u think it is okay to apply for credit card to help a relative who is in debts so that he can balance transfer all his debts and just pay it through direct debit,,i really want to help him,,but just thought thats the only i can help,,using my name to apply for credit card or tesco loan and putting all his debts in place. He has a very low credit rating and therefore could not get any decent loan.

thanks

hiya mrs budget,,,i really understand how and why you want to help him, but this is where im left with, i helped a friend in trying to save her house with my credit card payment and thus my problems increased dramatically,

i dont want to scare you in not doing anything to help, as i truely believe there are people in the is world that do deserve help of course, my experience though has soured this slightly for me,

its very noble of you to help but i would strongly get something in writing because if things go wrong ultimately you are the one that the credit card balance belongs to and you will be chased hard for any arrears

unfortunatelty if it goes wrong you will be in big trouble if he doesnt pay and you cant neither, so think very hard first and see what other options he can do to help himself

depends what kind of debts he has to deal with, and if they are priorty ones or not, ie if loans and credit cards can he not get a debt management programme see cccs or nationaldebtline for further info

again i say tread carefully and really sit down and get a feel for what the full info is ie see the letters he has got and then decide

i too thought id help and now nearly two years on im facing a possible charging order on MY HOUSE,,,for her debt,,,, :eek:

i really dont want others to have the worry ive had for these past months honest if it was my own money id spent id be accepting of the situtation but i just feel angry and demoralised and still i have to face the music as best as i can

virtual hugs to you and i really hope you can sort out something useful

maz

mrsbudget

thanks maz,, and i will consider your advise,,

moneymouth77

mrsbudget - I really wouldn't recommend it, primarily because if anything goes wrong, it's on your head. Not that your friend will do you wrong, but you have nothing to say if the unfortunate occurs. Steer well clear of this one!