Anecdotal - Friends Have Asked Me To Help With Mortgage After Coming Off Their Fix the curse of the peak 5y fix coming to an end
Posted 04 March 2012 - 02:27 PM
Posted 04 March 2012 - 03:26 PM
The key thing to assess at the outset is the question, are you lending the money to clear up a situation that is untenable in the long term, or are you lending to cover a short term situation that has a clear solution, if you stress at the outset what your expectations are and you have a decent trust of the person you are lending to then I don't think it is such a problem, as well as destroying a friendship helping somebody out who then repays your trust in them can be a good outcome.
The situation here of a friend deep underwater and looking for some time to stave off the inevitable is going to result in stupidity on both sides if a bailout is given ( like the greece situation ) but I do not agree with the general philosophy that offering a friend a lifeline when they need it is in all cases a silly thing to do ...
Posted 06 March 2012 - 02:53 PM
His family lend each other money between, sometime quite substantial amounts - several 10ks
I asked if they ever worry if they'll ever have someone not pay it back.
He says No. They do do some credit check, check for fecklessness.
But it works out - they lend at rates higher than they can get for cash. The borrower gets cash at a lot less thanthe banks will lend.
Cutting out the middleman.
A Ugandan Asian I worked with told me about this, although he never mentioned interest. For every marriage it was a couple of £k from the parents, £500 from each sibling down to £50 from each distant cousin. That was 1980 and it usually totaled enough to buy a terraced house for cash in the North West. He came in bright and cheery one Monday morning as 6 of his cousins had each paid him the £50 they owed. On Thursday he looked like a wet weekend, his brother had just got engaged.
I did ask what would happen about non payment, in short they'd be extradited and a totally alone Asian in a white country was not something any of them would care to face.
Posted 20 April 2012 - 07:21 PM
The wife is a teacher and the husband is a skilled craftsman. They say they never have money (but go on holiday a lot) and have large unsecured debts as well (£20k +).
Any updates on this story? Lend them money if you will but I wouldn't. People like that just have no idea with money. They really don't. Like one of my friends. She is always in her overdraft and on credit cards. Everytime she remortgages the house to pay it off she says thats it I'm not getting into debt again. 3 months later shes well back in the red. She must have remortgaged the house 3 times now. She seems to have no concept of cutting back on things or that the answer is sorry I just can't afford it. She has NTL TV with all the movie channels and rejected my suggestion and her fathers that she should be happy with just freeview. She takes her kids on holiday and spends a packet.
I give up.
Posted 23 April 2012 - 09:29 AM
I never really expected to see the money back as at the time I could afford not to see it returned but now his dad was involved, a high ranking QC with a reputation preceding him and went through his account with a fine toothcomb, seeing what had happened he insisted that I take a cheque for the full amount from him and settled all costs that other parties incurred. This was no free meal ticket for my mate he had to pay back absolutely every penny and that took him a decade. Very awkward for all of us.
John Baker, Aberdeen 8/10/2011 22:34
"the world seems a better place when you're wearing beer goggles".
Quote buried in same article from 27 year old female subject painting the town of Cardiff red on a booze fuelled night out.