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127 votes

Best way to get my money back from a friend having family problems

As a general rule of thumb, when lending anything to a friend or colleague, never lend more than you would be willing to give as a gift. If it gets repaid, that's great. If it doesn't, chalk it up to ...
Ray Butterworth's user avatar
112 votes
Accepted

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

It's a little unusual, but I don't think the financial terms are completely unreasonable on their face. What you describe is similar to an interest-only loan, where you make payments that only cover ...
Nate Eldredge's user avatar
53 votes
Accepted

Best way to get my money back from a friend having family problems

I assume the goal here is for both he and you to feel some progress is being made toward repaying the loan, even if in practice very little is done towards achieving the final goal of total repayment. ...
chepner's user avatar
  • 4,466
44 votes

Should I charge my children interest when they borrow money?

I think there's value in charging family members/friends interest if it will make them take the loan seriously. The problem is that if you're thinking about charging interest because the person seems ...
BrenBarn's user avatar
  • 24k
42 votes

Does borrowing from my 401(k) make sense in my specific circumstance?

The set of circumstances that 401k loans make sense, are very small. As you would expect yours is not one of them. You make 70K per year and need 6500. Interest rate is not your problem, ...
Pete B.'s user avatar
  • 76.7k
37 votes

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

"Ripped off" may be too strong as it implies intent - I'm hopeful it's just bad logic or terminology. I would say better agreements would be: You own the condo 100% and borrow the remaining 75% ...
D Stanley's user avatar
  • 136k
31 votes

Should I charge my children interest when they borrow money?

Tell them you will not loan them any more money until their existing debts are paid off. This is closer to how the real world works and it won't come across as vengeful or like your changing your ...
LCIII's user avatar
  • 591
26 votes

Does borrowing from my 401(k) make sense in my specific circumstance?

I completely agree with Pete that a 401(k) loan is not the answer, but I have an alternate proposal: Reduce your 401(k) contribution down to the 4% that you get a match on. If you are cash poor now ...
D Stanley's user avatar
  • 136k
25 votes

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

To expand on what @fishinear and some others are saying: The only way to look at it is that the parents have invested, because the parents get a % of the property in the end, rather than the ...
Erik Eidt's user avatar
  • 359
24 votes
Accepted

Does borrowing from my 401(k) make sense in my specific circumstance?

Your comment regarding your existing finances is very relevant and helpful. You need to understand that generally in personal finance circles, when a strong earning 22 year-old is looking for a loan ...
quid's user avatar
  • 49k
19 votes

Can you borrow foreign currency from local banks?

It depends on the country-- there is no general answer. In some countries, it is common for loans to be available in the local currency or in some other currency. In others it is not. In Canada ...
Justin Cave's user avatar
  • 27.3k
17 votes

Should I charge my children interest when they borrow money?

Parents are eminently capable of gifting to their children. If it's a gift call it a gift. If it's not a gift, it's either a loan or a landmine for some future interpersonal familial interaction (...
user662852's user avatar
  • 8,389
16 votes

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

First, this was never an arrangement for you to build equity, this was an arrangement for them to speculate on another house under the guise of teaching you a life lesson like responsibility or ...
CQM's user avatar
  • 20.2k
13 votes

Why don’t broker-dealers borrow against their clients’ stock holdings instead of lending them?

Pause on the issue with 'having security for a loan' for a moment [it seems to be clouding the economic reality of what you are presenting]. Your plan is for a bank to lend your hypothetical broker ...
Grade 'Eh' Bacon's user avatar
11 votes

Borrowing money and then investing it -- smart or nart?

The biggest concern is how you get $250,000 in unsecured credit. It's unlikely that you will be loaned that amount at a percentage lower than what you expect to earn. Unsecured credit lines are rarely ...
NL - Apologize to Monica's user avatar
9 votes

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

You are getting totally hosed mate. Assume you live in the house for ten years, can get a normal 30 year mortgage and house prices average at 3% annually You could get a mortgage at 3.8% so your ...
Mike wright's user avatar
9 votes

Do rich people never have to pay back what they borrow with their wealth as security? Does the same apply in my case?

Obviously, no one here is going to know exactly how some rich person or another manages their finances. In general, however, if someone owns a property, they can take out a loan against that property. ...
Justin Cave's user avatar
  • 27.3k
8 votes

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

If I understand you situation correctly, then the accepted answer is extremely misleading and incorrect. Your arrangement with your parents is definitely unreasonable. It is definitely not "similar ...
fishinear's user avatar
  • 197
8 votes

Does borrowing from my 401(k) make sense in my specific circumstance?

I see you've marked an answer as accepted but I MUST tell you that STOPPING your 401k contribution all together is a bad idea. Your company match is 100% rate of return(or 50% depending on structure)....
cornbread's user avatar
  • 165
8 votes

Best way to get my money back from a friend having family problems

So, I am in the situation of having a friend who can’t return the money now, he and his girlfriend ask me for patience, and I don’t see any plan from them to return the money. I would just let it go ...
Machavity's user avatar
  • 2,344
8 votes

Can you borrow foreign currency from local banks?

Bulgaria here: Banks widely offer loans in BGN (the local currency), as well as in EUR and USD. The interest rates for EUR and USD are somewhat lower than those for BGN. The difference used to be ...
fraxinus's user avatar
  • 943
8 votes

Why don’t broker-dealers borrow against their clients’ stock holdings instead of lending them?

They don't own the stock The first big thing is that they are prohibited to do so, they are required by SEC custody rules to keep the stock under a qualified custodian unencumbered. E.g. 17 CFR § 240....
Peteris's user avatar
  • 3,353
7 votes

Should I charge my children interest when they borrow money?

Going from personal experience, my parents let my brother and me borrow money from them all the time. However there was always some noteworthy things to take into account. I was never charged ...
Sh4d0wsPlyr's user avatar
7 votes
Accepted

How should one refuse to father in law (Chinese) when he wants to borrow money?

In these situations, one solution is to use the "I was just about to ask you the same thing..." response. This is kind of a famous way to deal with people asking you for money, whether it's someone ...
Fattie's user avatar
  • 13.8k
7 votes

How can I borrow in order to improve a home I just bought?

Be careful that pride is not getting in the way of making a good decision. As it stands now what difference does it make to have 200K worth of debt and a 200K house or 225K of debt and a 250K house? ...
Pete B.'s user avatar
  • 76.7k
7 votes

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

Yes, you are getting shafted. In the end, you will have paid the full price of the condo, but still own only 25% of it. Your parents' stake in the home should decrease as you repay the loan. The way ...
Nuclear Hoagie's user avatar
7 votes

Borrowing money and then investing it -- smart or nart?

I will use 10% of this 20K to pay the loan back on an annual basis agreement An annual payment of 0.8% ($2,000 / $250,000) is nowhere near large enough. The interest alone is going to be well over $...
D Stanley's user avatar
  • 136k
7 votes

Why don’t broker-dealers borrow against their clients’ stock holdings instead of lending them?

I think you are asking about earning a small spread between an overnight borrowing rate and a longer (but still short-term) Treasury bill rate. That small spread, if it exists, is only a fair ...
nanoman's user avatar
  • 29.7k
6 votes
Accepted

Why would anyone borrow using a DEFI (Decentralised Finance) platform?

You would only do this if you don't mind locking up the collateral. For example, say you have $100 worth of ETH and you plan to hold it long term anyway. Having to lock it up has near zero cost to you....
David Schwartz's user avatar
5 votes
Accepted

Borrow and return HSA funds in same tax year - taxes and/or penalty?

No, HSA disbursements and contributions are not "netted" like that. Contributions and disbursements are accounted for separately and must be independently qualified. Any non-qualified ...
D Stanley's user avatar
  • 136k

Only top scored, non community-wiki answers of a minimum length are eligible