Lending money to friends & family

poppasmurf_bewdley

Tell them that you'd paid up £4000 in advance for a new kitchen from Dolphin and they've just gone bust and you've lost all your money. It may be a good idea to tell them both about this today, and say you need a loan from them to tide you and your family over for a week or two. See if that works.

Up_For_Grabs

Agree with Tixy. I was going to say that it would be an idea to buy something of value with any savings you have and tell the brothers that you have done that and that you are putting it away to sell one day in the future for you childs education or something similar. In that way you aren't telling a lie if you would find that difficult and you wouldn't have any spare cash if they should come calling.

You could of course sell the item if you had need for the cash yourself at any point. Just make sure if you did buy anything however that you watch what you buy as like everything the values do change over a period of time. You could find the item gains value which would be nice but could go the other way as well.

andy.m_2

Tie your money up in a long term bond with penalties and show them the passbook to confirm this.
Then plead poverty and ask them to make good on previous loans as you've over estimated your investment and you are short.

*Louise*

Tixy wrote: »

Or next time they ask show them a small cashbook where you have written down the date and amount you are about to loan them, and ask them to sign that and give a date the money will be paid back. The time after that tell them you won't lend them anything until they have paid off the previous loan written in your book.

I like that suggestion

Browntoa

always trust a lender who uses a free hotmail account for contact , it shows they must be a really big professional lender

edinburgher

I need my money for my future and my family. How can I stop them depending on me to bail them out?

Just say no.

If they try to emotionally blackmail you just ignore them until they:

a) stop and grow up
b) leave you alone because they no longer view you as a source of free money, giving you more precious free time with your wife and child

tinyplanets

smj43 wrote: »

I have a problem with 2 brothers always coming to me for money. My brothers are both working and both single. They still live with my parents. I'm working and have to support a partner and child as well as living away from my parents. For some reason, they just can't control their spending and both live way above their means. On the other hand, I have quite alot of money in savings and they know this so they use emotional blackmail and give me no choice but to lend them money and bail them out time after time. I have tried to say no, but I just can't do it. They always have a reason why they need money and give me no choice. The thing is they rarely pay me back and if they do, it is usually months down the line. I need my money for my future and my family. How can I stop them depending on me to bail them out?

Don't feel bad about saying no. Your brothers are responsible for themselves. I have been asked by 1 brother to garantee a loan but just refused. He is bad with money and while others keep bailing him out, he's not going to learn. Its wrong to make you feel guilty. It would be different if the problems had been bad luck rather than bad judgement. Your first responsibility is too your partner and child.

Faani

I do it many times. several times i lend money to my friends.

Jeanette26

Hi everyone,

We've borrowed £10,000 three years ago from friends. We promised that we'd repay the money back, adding the interest the money would have earned in a cash ISA savings account over the last three years.

We started saving the money straight away, in an Egg cash ISA account and we thought we'd just give them all the money saved at the end of the period. That amounts to £10,137, including the interest over the last 3 years.

Unfortunately, we've missed the point that we should have calculated the interest on the £10,000 from the very start and now we are unable to do this calculation ourselves. At the moment, we are unable to pay our friends the correct amount they are due at the end of this period, which is now.:wall:

We would appreciate it very much if somebody calculates the average interest on £10,000 in a cash ISA without moving it to the best rate each year. Or at least give us a clue how we could do it.

We tried to ask at one of our banks but they wouldn't do it retro, and besides, their interest would have been different anyway.

Thanx very much for your help in advance.:)

Tixy

Do you know what APR your egg ISA had for each of the 3years? It should be on the paperwork somewhere.

Then the sums should be easy
Yr 1 £10k x X% = yr1 interest
Yr 2 £10k+yr1 int x X% = yr2 int
Yr 3 £10k +yr1 int +yr 2 int x X% = yr3 int

ie if the interest was 2.5% in year 1 and 1.5% in year 2 and 3 you would owe
£10000 x 2.5% = £250
£10250 x 1.5% = £154
£10404 x 1.5% = £156

Total repayable £10560.