From the article: 7 Sins of Family Loans - How Family Loans go Bad
Family loans can be a dream come true or a nightmare. When mistakes happen or communication fails, family loans are not worth the money. See where others have gone wrong with family loans and share your story. Share Your Story
better to pay family interest than bank
- My father retired and had some money that he needed to invest so he can live off the interest. The interest he would have earned if he put it in a secure account was less than what I was paying to a bank for my mortgage. So he loaned the money to me at a lower interest rate that I could have gotten for my mortgage and that was higher that what he could have gotten. Win win and we were glad to help each other out.
- —Guest joe
Family Loan ,Family Lost
- My daughter begged me to borrow over 25,000,which I had to borrow on my home equity mortgage She promised it was short term until she sold another home she had.When the loan I had turned into a 15 yr payout of principal and interest she said she could'nt afford it nor could I so I had to sell in a distressed market. I do not have enough to buy home, am renting a tiny apartment and she will not even talk to me. I have tried to offer her a 15 year personal loan which would give me about 200 a month and be very affordable for her also, but she will not even respond. I really have tried to make this work as easiest for her and do need this . I am heartbroken & seem to have lost my daughter,will not answer phone,email not even a hello on mothers day. I am so sorry I "helped " as she thinks of me as the bad guy now. I have always stressed to her that I am not angry, just want to come to an agreement on settling this loan . Any suggestions?
- —Guest Left Broke & Heartbroken
lost money
- my brother needed money after a layoff maybe 5 years ago. we knew he was in over his head but gave him $ 2500 to make the bills until he got a new job. well he got a job and paid us back for a few months and then got laid off again. well it is now 5 years at least and he doesn't pay anything so we gave up asking because it makes everybody awkward. oh well I guess we learned a lesson. he has a job and spends money but we never see any of it
- —Guest anonymous
