Lending money to friends & family

Jeanette26

Tixy wrote: »

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.

Thanks a lot, Tixy,

I've found the rates but as we put the money into this account in July 2008, I am not sure what to do with these changes I see here.

The account was [FONT=Arial, Helvetica, sans-serif]Egg Cash ISA.

Here are the Historical Rates for it:
[/FONT]Egg Cash ISA.
DateInterest rate paid monthly paid annually
12 March 2009 - present-1.55% gross pa/AER
20 February 2009 - 11 March 2009-2.05% gross pa/AER
19 January 2009 - 19 February 2009 - 3.05% gross pa/AER
19 December 2008 - 18 January 2009 - 3.55% gross pa/AER
14 November 2008 - 18 December 2008 - 4.55% gross pa/AER
6 April 2007 - 13 November 2008 - 6.05% gross pa/AER

jimmo

Now look, you borrowed £10,000 from friends 3 years ago and, as far as I can see, you have not paid a penny back to them yet.
Also, as far as I can see, your friends lent you £10,000 on trust, without a legally binding contract.
3 years ago my guess is that even with a perfect credit rating you would have been lucky to obtain a commercial loan at 7% APR.
£10,000 at 7% simple interest, over 3 years is £2,100 interest.
If I were in your position I like to think that I would repay my friends their original £10,000 plus a minimum of £1,000, if you like, as interest, but more as a recognition of the trust that friends gave where banks wouldn't.

Jeanette26

jimmo wrote: »

Now look, you borrowed £10,000 from friends 3 years ago and, as far as I can see, you have not paid a penny back to them yet.
Also, as far as I can see, your friends lent you £10,000 on trust, without a legally binding contract.
3 years ago my guess is that even with a perfect credit rating you would have been lucky to obtain a commercial loan at 7% APR.
£10,000 at 7% simple interest, over 3 years is £2,100 interest.
If I were in your position I like to think that I would repay my friends their original £10,000 plus a minimum of £1,000, if you like, as interest, but more as a recognition of the trust that friends gave where banks wouldn't.

I see your point, Jimmo, but as a matter of facts, our friends offered to help, we do have a signed written contract and it says what I stated above, plus a certain % on top of that (which I can calculate myself). That's why I asked the question this way.

Thanks for your input.:o

Tixy

Jeanette26 wrote: »

Thanks a lot, Tixy,

I've found the rates but as we put the money into this account in July 2008, I am not sure what to do with these changes I see here.

The account was [FONT=Arial, Helvetica, sans-serif]Egg Cash ISA.

Here are the Historical Rates for it:
[/FONT]Egg Cash ISA.
DateInterest rate paid monthly paid annually
12 March 2009 - present-1.55% gross pa/AER
20 February 2009 - 11 March 2009-2.05% gross pa/AER
19 January 2009 - 19 February 2009 - 3.05% gross pa/AER
19 December 2008 - 18 January 2009 - 3.55% gross pa/AER
14 November 2008 - 18 December 2008 - 4.55% gross pa/AER
6 April 2007 - 13 November 2008 - 6.05% gross pa/AER

Using these interest rates I get a balance on £10736. This assumes that you borrowed the money at the start of July 08, and haven't yet paid anything back.
Obviously there could be some minor discrepanices due to exactly what date the money was borrowed and how interest is actually paid on the egg ISA so I'm not suggesting my answer is exactly correct for your circumstances but that is a ball park figure. This is worked on £10k and interest calculated on a flat monthly basis (i.e not accounting for the different number of days in each month etc).

Jeanette26

Tixy wrote: »

Using these interest rates I get a balance on £10736. This assumes that you borrowed the money at the start of July 08, and haven't yet paid anything back.
Obviously there could be some minor discrepanices due to exactly what date the money was borrowed and how interest is actually paid on the egg ISA so I'm not suggesting my answer is exactly correct for your circumstances but that is a ball park figure. This is worked on £10k and interest calculated on a flat monthly basis (i.e not accounting for the different number of days in each month etc).

Thank you so much, Tixy, for all your help! You're a gem! :beer:

Mrs_Ryan

Just reading through this as I stupidly loaned my no good !!!!less brother £200. I wouldnt normally have this sort of money but I've just had some compensation for a car accident I was in and he knew I had it, he rang me while I was out Tuesday and fed me a sob story. He's borrowed hundreds off my Mum (who is a disabled pensioner) and borrowed £400 off my sister before Xmas (she wasnt working at the time, it was out of her redundancy payment)
Mum is absolutely furious with him (mainly as she still thinks of me as her little girl - I'm 30 and she thinks its disgusting that he should take my money) he has a gambling addiction and although he is working, I dont really hold much hope of getting the money back... Tempted to go down the court route but with it being family I really dont want to upset things.. Mum is poorly and I dont want her getting upset. She thinks its her responsibility to try and pay me and my sister back but I told her off severely!
Not really sure what to do now...

Apples2

For £200 I would forget about it.

sfry

Apples2 wrote: »

For £200 I would forget about it.

But obviously £200 is a significant amount of money for the poster and they cannot afford to forget about it.

The_pc_tech

Seems that money brings out the worst in people among other things.

Its why I tend not to lend money to friends and only lend to very close family.

mazz1953

he has a gambling addiction

Never, ever lend money to a gambler, unless you definitely can afford to lose it. Until he gets his addiction dealt with, he is going to bully and harass all the family for money. When you refuse him, you are going to get no end of verbal abuse off him.