Loaning Money to Family

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ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Jan 5, 2010 11:57 AM
Well, let me hear it. What do you think? I know that it "depends on the amount" and all the other cliché responses and arguments, but what do you think?

Good?
Bad?
Jan 5, 2010 11:57am
C

Con_Alma

Senior Member

12,198 posts
Jan 5, 2010 11:59 AM
I have done it and will do it again. I only loan what I can lose.

There's a fine line between enabling them for future irresponsibility and helping them out. So far I don't think I have enabled them but I have always said yes. I never asked for it back and each time they eventually came to me and paid it back....once over a very extended period of time.
Jan 5, 2010 11:59am
hasbeen's avatar

hasbeen

Excuse me, Flo?

6,504 posts
Jan 5, 2010 12:00 PM
I rarely loan money, ever, if it is a significant amount.
Jan 5, 2010 12:00pm
McFly1955's avatar

McFly1955

Senior Member

1,441 posts
Jan 5, 2010 12:00 PM
Nope.
Jan 5, 2010 12:00pm
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Jan 5, 2010 12:00 PM
I am going to vote "good" but only to see the results. So, when you look at "good," one of those votes are my own.
Jan 5, 2010 12:00pm
FatHobbit's avatar

FatHobbit

Senior Member

8,651 posts
Jan 5, 2010 12:02 PM
ernest_t_bass wrote: I am going to vote "good" but only to see the results. So, when you look at "good," one of those votes are my own.
lol, couldn't you just click "show results"?

I've loaned money to family, but I always assume it will never be paid back.
Jan 5, 2010 12:02pm
Q

queencitybuckeye

Senior Member

7,117 posts
Jan 5, 2010 12:03 PM
Bad idea. I'd consider giving money depending on the circumstances, but no loans.
Jan 5, 2010 12:03pm
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Jan 5, 2010 12:03 PM
Yes, fathobbit, I COULD have just done that, but that also would mean that I have to stop being an idiot for a second.

D'Oh!
Jan 5, 2010 12:03pm
justincredible's avatar

justincredible

Nick Mangold

32,056 posts
Jan 5, 2010 12:04 PM
Depends on the family member, the situation and the amount.
Jan 5, 2010 12:04pm
hasbeen's avatar

hasbeen

Excuse me, Flo?

6,504 posts
Jan 5, 2010 12:06 PM
ernest_t_bass wrote: I know that it "depends on the amount" and all the other cliché responses and arguments, but what do you think?

justincredible wrote: Depends on the family member, the situation and the amount.
Damn it justin.
Jan 5, 2010 12:06pm
justincredible's avatar

justincredible

Nick Mangold

32,056 posts
Jan 5, 2010 12:08 PM
Yeah, I know.
Jan 5, 2010 12:08pm
CenterBHSFan's avatar

CenterBHSFan

333 - I'm only half evil

6,115 posts
Jan 5, 2010 12:15 PM
Con_Alma wrote: I have done it and will do it again. I only loan what I can lose.


This!
Jan 5, 2010 12:15pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Jan 5, 2010 12:34 PM
"I know that it "depends on the amount" and all the other cliché responses and arguments, but what do you think?"

LOL you asked and answered your own question, it is too nuanced of a situation to have a blanket point of view. I will suggest that if family members loan money, it should be a handshake arrangement and money that the lendor can afford to lose rather than actually executing a note or other type of debenture, unless it is business related and may affect tax issues.

When I was in school my Dad kept a running tab on money he "advanced" to me - mostly involving upkeep of my vehicle. I swear Ford hardwired their cars in the 80's to need the transmission rebuilt after 100,000 miles. It wasn't a ton of money but I paid him back over a year when I got my first "real" job. Talking to him now I think he regrets that I paid him back, probably has something to do with me telling my parents that folks in my generation (Gen X) and younger should retire the word retirement from the dictionary, given that none of us will ever retire, whereas my father as a government employee can right now draw a pension that pays above the average American salary for the rest of his life.
Jan 5, 2010 12:34pm
G

GeneralsIcer89

Senior Member

281 posts
Jan 5, 2010 1:07 PM
After losing $1100 to my father this way (loaned him $1600, only got $500 back), I say BAD. I'll never do it again.
Jan 5, 2010 1:07pm
D

dtdtim

Senior Member

358 posts
Jan 5, 2010 1:24 PM
It depends on who in my extended family would ask but I probably still would.

My immediate family I would, without question. My family has given me so much that it's the least I could do. If I had it, it's theirs.
Jan 5, 2010 1:24pm
Sage's avatar

Sage

Senior Member

2,070 posts
Jan 5, 2010 1:36 PM
I don't loan money to anybody.
Jan 5, 2010 1:36pm
Fab4Runner's avatar

Fab4Runner

Tits McGee

6,196 posts
Jan 5, 2010 1:39 PM
I never have money to loan. If I did I might consider it.
Jan 5, 2010 1:39pm
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Jan 5, 2010 2:02 PM
No I just give it b/c I know it most likely isn't getting repaid.
Jan 5, 2010 2:02pm
Heretic's avatar

Heretic

Son of the Sun

18,820 posts
Jan 5, 2010 2:11 PM
CenterBHSFan wrote:
Con_Alma wrote: I have done it and will do it again. I only loan what I can lose.


This!
And again! Whether it be family or a friend, I'd never loan more than I care to lose. If someone asked me for $20-40 and didn't pay me back, I could shrug it off, but if it was a number like $100+, things could get ugly in a hurry, as I wouldn't be so forgiving of their failure to repay.
Jan 5, 2010 2:11pm
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Jan 5, 2010 2:12 PM
Here is the situation.

Sibling needs money for rent (due on 10th)
Gets check on 25th (rebate check for school... something, not sure).
Landlord has let them pay late once, and says it's not happening again.
Parents said "NO"
Sibling has NO money until then (not sure how they will eat)

Leads to following scenario:
Rock/Ernest T. Bass/Hard Place
Jan 5, 2010 2:12pm
FatHobbit's avatar

FatHobbit

Senior Member

8,651 posts
Jan 5, 2010 2:15 PM
ernest_t_bass wrote: Here is the situation.

Sibling needs money for rent (due on 10th)
Gets check on 25th (rebate check for school... something, not sure).
Landlord has let them pay late once, and says it's not happening again.
Parents said "NO"
Sibling has NO money until then (not sure how they will eat)

Leads to following scenario:
Rock/Ernest T. Bass/Hard Place
If the sibling was usually responsible, I would go for it. My guess is they aren't and that's why the parents said no.
Jan 5, 2010 2:15pm
Fab4Runner's avatar

Fab4Runner

Tits McGee

6,196 posts
Jan 5, 2010 2:29 PM
I've been in a similar situation before. You can't really do anything but wait for your refund check to arrive...it sucks. If your sibling has proof that they will get the money on that date I would say you'd be okay in lending the money.
Jan 5, 2010 2:29pm
G

GeneralsIcer89

Senior Member

281 posts
Jan 5, 2010 2:30 PM
Get it in writing.
Jan 5, 2010 2:30pm
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Jan 5, 2010 2:39 PM
ernest_t_bass wrote:
Landlord has let them pay late once, and says it's not happening again.
So he says. He'll just be happy he gets his money.
Jan 5, 2010 2:39pm
j_crazy's avatar

j_crazy

7 gram rocks. how i roll.

8,372 posts
Jan 5, 2010 2:41 PM
I hate lending money to people. I wouldn't loan it, you can gift it, don't loan it.
Jan 5, 2010 2:41pm