Loaned money to a family member. Could do with some advice.

Deregos.

https://www.boards.ie/discussion/2058280112/loaned-money-to-a-family-member-could-do-with-some-advice

You lending him the money was a good thing for you to do, I'm sure he appreciates your help.

You changing the agreement by coming back and looking for interest on top is not a good thing to do.

I reckon if the shoe was on the other foot, and you were the one who'd borrowed the 50k, then during the process of paying it back, the lender turned around to you and started complaining that there was 'nothing in it for them', and that they wanted added interest on top, just to make them feel better about the deal, you'd be on here creating a thread, complaining about your treatment by your extended family member.

And rightly so.

rock22

https://www.boards.ie/discussion/comment/120122484#Comment_120122484

So you want to charge your family member much more that a bank would have charged him.

Are you a licenced money lender?

Would it not be illegal for you to charge interest on a loan?

callaway92

https://www.boards.ie/discussion/comment/120122882#Comment_120122882

He probably mentioned it in a state of panic. I doubt there was much logic in his thinking if he was 50k deep

MarkR

Once you get your money back, you can say that we never discussed an interest rate, what do they think would be fair. If they say 0, then it's up to you. Do you want to fight over it?

Goodigal

I think you should count yourself lucky that you had the cash to help him out in the first place, and secondly that he's paying you back because he's recovered from the financial trouble he was in. Life's too short to be wondering if you should have asked for interest. I have loaned 2 siblings money in the last 10 years and got it back when they had it. Not once did I consider asking what interest could I have accrued on that money. But they needed it, and paid it back without me asking for it.

He won't forget that you helped him out, but don't try to make it awkward now by suggesting interest. You did a good deed. You'll be remembered for it. Do something with the money when you get it back!

https://www.boards.ie/discussion/comment/120123343#Comment_120123343

Everyone has use for €50K. I have a 10 year state savings bond which will mature by the next 3 years, and I can assure anyone I will have use for it, be it a car, a home improvement, or something I’ve not even thought about yet. I will have use for it.

Re interest, I personally wouldn’t charge it to a relative or friend but I would expect every effort to be made to repay me as soon as the person would be genuinely on their feet and I’d be keeping my eye on the situation. I always expect another to treat me as decently as I have treated them, and I’m assertive about it.

My tuppence worth of advice to anyone who is considering lending to give a dig out to any relative/friend, is to carefully draft up a Promissory Note, to be “signed, sealed & delivered” by borrower and lender. Let the lender keep the note and provide borrower with an identical copy marked “copy”. Such a thing will help prevent misunderstandings and at least keep the borrower’s mind focussed as to the terms under which they borrowed. Especially important for any four or more figure sum.

Sallywag37

https://www.boards.ie/discussion/comment/120123167#Comment_120123167

This is a very thoughtful response. A lot to think on here. Thank you.

Sallywag37

https://www.boards.ie/discussion/comment/120123334#Comment_120123334

Must be a lot of people out there sitting on their hoops so. €20,000 is only two years savings at less than 30 quid a week.

10000maniacs

https://www.boards.ie/discussion/2058280112/loaned-money-to-a-family-member-could-do-with-some-advice

I had €100,000 in the EBS since 2017 and guess how much interest it has accumulated?

€750 is the answer.

But loans are different because of inflation.

If you didn't loan the €50,000, what would you have done with it?

Would it have been sitting in an EBS (or whatever) account generating peanuts?

Victor

https://www.boards.ie/discussion/comment/120125706#Comment_120125706

€30 x 52 x 2 = €3,120.

To save €20,000 in two years means €192/week.

Jim_Hodge

https://www.boards.ie/discussion/comment/120125706#Comment_120125706

Do the maths there again.

Sallywag37

https://www.boards.ie/discussion/comment/120125761#Comment_120125761

Excuse me, I meant a day. There are plenty of people who could save twenty grand in two years if they stopped smoking, or drinking or eating regular take away meals. I know people who smoke like chimneys, drink like fish and eat frequent curries delivered to their door then complain that they've no money.

https://www.boards.ie/discussion/comment/120125706#Comment_120125706

30 quid a week over two years = €3,120.

How are you making it €20K? If so, can you tell me?

Squatman

https://www.boards.ie/discussion/comment/120125706#Comment_120125706

not sure what bubble you live in, but genuinely, if you were to look at your friends, how many do you think have that sort of money?

if you think more than 1 in 10, (assuming not saving for a house) then your D4. the average industrial wage is 43k (jobted.ie). or 3683 gross per month. Assuming single, this is 2853 after tax (talent.com). the average cost of rent in ireland is 1460 per month (cite RTB website). I would expect mortgage costs to be similar. leaving 1400 after tax. saving 30 per day, would leave them with 500 for esb, food, heat, transport, washing, tv licnece, phone, laptop/tablet, clothes per month. so, on average, it is not normal to save 20k in 2 years, unless your in a D4 type bubble

Jim_Hodge

https://www.boards.ie/discussion/comment/120126648#Comment_120126648

There's still considerable amounts being saved though. From 2017: "Almost two thirds (64%) of Irish people have money saved on deposit, averaging €45,500 each, according to a recent Standard Life survey". And savings rates have increased since 2020.

Big Bag of Chips

OP, are you actually looking for advice on your issue? Personal Isssues is not the forum for general discussion on savings and investments, If you are looking for advice regarding the loan can I ask that you stick to discussing that. If you want a general discussion surrounding savings we will lock this thread and you can start another one elsewhere.

Thanks

Sallywag37

https://www.boards.ie/discussion/comment/120126648#Comment_120126648

I have friends and acquaintances from across a very broad sweep of society and no, none of us live in Dublin 4. You have some very apparent hostility towards people who have more money than you. I'm glad to say I never shared your sentiments, even when I was broke on the bones of my arse. There is nothing wrong with people dedicating themselves to hard work and saving for the future. It doesn't warrant your hostility.

And Big Bag of Chips, you can feel free to lock the thread now. Though I have to say if a mod was going to step in I'm surprised it didn't happen earlier in the thread when the poster above began hurling personal insults at me.

Big Bag of Chips

Thread locked as requested by poster.