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  • FIRST POST
    • gord115
    • By gord115 16th May 19, 5:51 AM
    • 924Posts
    • 256Thanks
    gord115
    Lending 10k, how much to pay me back?
    • #1
    • 16th May 19, 5:51 AM
    Lending 10k, how much to pay me back? 16th May 19 at 5:51 AM
    I have offered to lend a relative 10000 from my Santander current account.
    This pays 1.5% interest.
    I don't want to make anything out of this deal but my relative wants
    to pay me back without it costing me.
    How much per month should they pay me back over 48 monthly payment?
Page 1
    • dmelife
    • By dmelife 16th May 19, 6:06 AM
    • 80 Posts
    • 85 Thanks
    dmelife
    • #2
    • 16th May 19, 6:06 AM
    • #2
    • 16th May 19, 6:06 AM
    222 per month, rounded up to the nearest pound!
    • ctdctd
    • By ctdctd 16th May 19, 6:40 AM
    • 905 Posts
    • 745 Thanks
    ctdctd
    • #3
    • 16th May 19, 6:40 AM
    • #3
    • 16th May 19, 6:40 AM
    222 per month, rounded up to the nearest pound!
    Originally posted by dmelife

    Not strictly true, given that capital is reducing throughout the loan.


    I make it 215 per month for 10,000 @ 1.5% repayable over 48 months.
    Do Money Saving sites make you buy more bargains - and spend more money?
    • Sea Shell
    • By Sea Shell 16th May 19, 6:42 AM
    • 1,679 Posts
    • 2,893 Thanks
    Sea Shell
    • #4
    • 16th May 19, 6:42 AM
    • #4
    • 16th May 19, 6:42 AM
    I hope it all works out for you, but you only have to read these forums for a while to see all the tails of woe about loans not being paid back. Just be aware, that there is a chance you won't get it all back.

    Why do they need the money? Are you sure they have the spare cash to pay you back each month? Can you afford to write off this money if they don't pay you back?

    If you're still intent on lending, at least get something in writing stating all the terms, then both sign it.

    Good luck!
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • Sea Shell
    • By Sea Shell 16th May 19, 6:48 AM
    • 1,679 Posts
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    Sea Shell
    • #5
    • 16th May 19, 6:48 AM
    • #5
    • 16th May 19, 6:48 AM
    Also, have you now paid off your 11k outstanding loan you had back in January 18? Wasn't the money in your Santander account ringfenced for that??

    Personally I wouldn't lend any money to anyone, if I still had debt myself. Do you?
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • frugalmacdugal
    • By frugalmacdugal 16th May 19, 7:01 AM
    • 6,559 Posts
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    frugalmacdugal
    • #6
    • 16th May 19, 7:01 AM
    • #6
    • 16th May 19, 7:01 AM
    Hi,



    Not strictly true, given that capital is reducing throughout the loan.
    Originally posted by ctdctd

    aye, but the interest on the 10,000, if left in Santander and interest rate remains at 1.5% for 4 years would be, 600.
    Y'all take care now.
    • ctdctd
    • By ctdctd 16th May 19, 7:15 AM
    • 905 Posts
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    ctdctd
    • #7
    • 16th May 19, 7:15 AM
    • #7
    • 16th May 19, 7:15 AM
    Hi,
    aye, but the interest on the 10,000, if left in Santander and interest rate remains at 1.5% for 4 years would be, 600.
    Originally posted by frugalmacdugal

    Presumably, as the loan is repaid, the OP will put it back in Santander and earn interest on it.
    As they said that they didn't want to profit out of the deal, repayments based on reducing capital is the way to go!
    Do Money Saving sites make you buy more bargains - and spend more money?
    • DigForVictory
    • By DigForVictory 16th May 19, 8:22 AM
    • 9,293 Posts
    • 31,055 Thanks
    DigForVictory
    • #8
    • 16th May 19, 8:22 AM
    • #8
    • 16th May 19, 8:22 AM
    Why do they need the money? Are you sure they have the spare cash to pay you back each month? Can you afford to write off this money if they don't pay you back?

    If you're still intent on lending, at least get something in writing stating all the terms, then both sign it.
    Originally posted by Sea Shell
    Beautifully put & absolutely agreed with.

    OP, if you must go ahead with this, do please protect your money with the appropriate agreed signed paperwork. If everything goes sideways you can then chose which to cope without, the funds or the family but without the paperwork you are risking both.

    As a side thought have you a Will? Stick a copy of the agreed loan paperwork alongside it?
    • AnotherJoe
    • By AnotherJoe 16th May 19, 8:25 AM
    • 14,224 Posts
    • 16,927 Thanks
    AnotherJoe
    • #9
    • 16th May 19, 8:25 AM
    • #9
    • 16th May 19, 8:25 AM
    Beautifully put & absolutely agreed with.

    OP, if you must go ahead with this, do please protect document your lost money with the appropriate agreed signed paperwork. If everything goes sideways you can then chose which to cope without, the funds or the family but without the paperwork you are risking both.

    As a side thought have you a Will? Stick a copy of the agreed loan paperwork alongside it?
    Originally posted by DigForVictory
    Fixed your typos. Yes good idea about will
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • SmashedAvacado
    • By SmashedAvacado 16th May 19, 8:27 AM
    • 802 Posts
    • 760 Thanks
    SmashedAvacado
    i would want to be very clear about how they were going to pay you back. is the loan to cover them for example until they sell their house, or until they get some inheritance - that might be a better bet in terms of getting your money back when compared to lending it to someone who has just run out of money.
    • Malthusian
    • By Malthusian 16th May 19, 9:14 AM
    • 5,699 Posts
    • 9,471 Thanks
    Malthusian
    Why can't they get a loan from their bank? While putting as much as possible on a credit card with a 0% deal for 24 months?
    • cogito
    • By cogito 16th May 19, 11:02 AM
    • 4,211 Posts
    • 12,158 Thanks
    cogito
    Will the banks lend money to your relative? If they won’t take the risk, why would you?
    • gord115
    • By gord115 17th May 19, 7:36 AM
    • 924 Posts
    • 256 Thanks
    gord115
    Also, have you now paid off your 11k outstanding loan you had back in January 18? Wasn't the money in your Santander account ringfenced for that??

    Personally I wouldn't lend any money to anyone, if I still had debt myself. Do you?
    Originally posted by Sea Shell
    Yeah paid it back after three months,now have zero debt.
    • gord115
    • By gord115 17th May 19, 7:40 AM
    • 924 Posts
    • 256 Thanks
    gord115
    I hope it all works out for you, but you only have to read these forums for a while to see all the tails of woe about loans not being paid back. Just be aware, that there is a chance you won't get it all back.

    Why do they need the money? Are you sure they have the spare cash to pay you back each month? Can you afford to write off this money if they don't pay you back?

    If you're still intent on lending, at least get something in writing stating all the terms, then both sign it.

    Good luck!
    Originally posted by Sea Shell
    There is absolutely no doubt I will get the money back. I just want to save someone some interest.
    • dealer wins
    • By dealer wins 17th May 19, 7:42 AM
    • 6,380 Posts
    • 12,794 Thanks
    dealer wins
    There is absolutely no doubt I will get the money back. I just want to save someone some interest.
    Originally posted by gord115
    Do think of it as a gift though, just in case the worst happens. It happens over and over again as evidenced by the numerous threads on here!!
    Choose life
    • gord115
    • By gord115 17th May 19, 8:29 AM
    • 924 Posts
    • 256 Thanks
    gord115
    Not strictly true, given that capital is reducing throughout the loan.


    I make it 215 per month for 10,000 @ 1.5% repayable over 48 months.
    Originally posted by ctdctd
    Thanks, that's about the amount I had calculated,wasn't sure though
    • Malthusian
    • By Malthusian 17th May 19, 8:55 AM
    • 5,699 Posts
    • 9,471 Thanks
    Malthusian
    There is absolutely no doubt I will get the money back.
    Originally posted by gord115
    Nobody asked whether you doubted it or not. The question was why your relative can't borrow money from a bank and/or a 0% 24-month credit card deal.

    Nobody who lends relatives money interest-free has any doubts they'll pay it back (if they did they'd either charge interest or immediately write it off to zero and treat it as a gift) and yet large numbers of them still lose their money.
    • aroominyork
    • By aroominyork 17th May 19, 8:59 AM
    • 865 Posts
    • 292 Thanks
    aroominyork
    Gord – your wish to save your relative from paying higher interest is very kind but, like others, I really suggest you think twice about this. Lending money to people you know is a little like investing in a rising stock market: it seems safe at the time but it’s only when the market turns that you truly grasp the downside. If your relative asks to skip a payment what will you say, and when you say ‘OK’ once (because that’s the easiest answer to give) it risks becoming a habit.

    I have only lent money to people twice, a couple of hundred for a few weeks. Although they both paid me back at the end of the month like they said they would, it was only when the money left my account that I wondered what I would do if they could not repay me. If your relative has options to take a loan commercially, that might be best for you and for your future relationship, once you’ve decided how to explain your decision to them.

    My wife’s father used to say “as soon as you lend money to someone you become a b@stard”. I can see how that happens.
    • pearl123
    • By pearl123 18th May 19, 7:26 AM
    • 1,497 Posts
    • 2,180 Thanks
    pearl123
    Don't lend money, unless you can afford to loose it.
    • gord115
    • By gord115 18th May 19, 7:37 AM
    • 924 Posts
    • 256 Thanks
    gord115
    Thanks everyone.
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