Lending Small amount of cash to friends

[Sa Calobra]

Good friends and family I'd see <£100 as no problem, what's mines yours etc.

Anything over I'd expect the honourable thing to be done I.e paid back. Id see it as a guage of how they see my worth go them.

[The Mad Monk]

Adam B said:

WolfAir said:

I made a thread a long time ago about lending £400-ish to a friend, who on paying me back I was going to buy some epic electric RC models. I never did get those models. Also financed his B7 RS4 purchase because his credit was shot, which in his defence he has paid (taking 4 years), and then I lent him a £1000 for tyres for it.
I don't hold high hopes for it back if I'm honest.

And this is where some people including myself are struggling. It is not a criticism it's obviously just a different view of the world.

You lent him 400 which he failed to pay back, so you lent him more which you also don't expect back. These are gifts not loans!

My friendships work differently (not better just different).

You don't borrow what you can't afford to pay back, and it would be very dishonourable not to do so.

That guy would no longer be my friend and I would be pointing out that maybe he should prioritise his friends and buy an A4 not a bloody RS4 that he can't afford tyres for!

Edited by Adam B on Friday 17th March 01:33

He paid back the £400, but took 4 years to do it (or do I misunderstand?).

I think I would have got the message then and had a nasty attack of the "Oh, you've caught me at rather an awkward time, I don't have any spare cash" for any future borrowing requests.

[teapea]

I have lost friends over lending money.
Also lost friends after refusing to lend them money!

Most recently I lost a friend after refusing to lend them money and then refusing to be a guarantor for a amigo loan, after they hounded me for days with texts saying I should do it and me repeatedly saying no way!

[xjay1337]

fridaypassion said:

oyster said:

This is a really odd thread.

We live in a credit-fuelled society. If you want business start-up cash then it's available. If you need emergency rainy-day cash then it's available. Why on earth do you need friends or family to lend you money?

I can't tell if this is a regional thing - is it Northern? London?
I can't tell if it's a 'class' thing - is it working classes doing this?

It's just so far removed from anything I've ever experienced before.

I would disagree with that. Business startup cash growing on trees? Where? There was bugger all about when I started out. People have all sorts of individual situations. A lot of the more genuine situations on this thread have been cash flow related and I can relate to that having had one or two situations where 10k would have helped me out. If you just need the cash for a month there's not much appeal in getting a loan. I suspect some of the borrowers probably the ones that don't pay back have possibly exhausted their other more mainstream credit lines.

I also agree Fridaypassion.

Also, borrowing £10k from the bank, you may pay back between £11500 ad £15000 depending on your personal finance rates.
If you can borrow that from a family member without interest or with minimal interest you can cut a years of your repayment, over 4 years you can easily cut that to 2.5 years for example without the interest.

[p1doc]

I have left my father in law money realistically knowing he cannot pay me back but he is a very sound bloke who is just permanently skint unfortunately
but being a true northerner know how much he owes me lol

[catman]

The Mad Monk said:

He paid back the £400, but took 4 years to do it (or do I misunderstand?).

I think I would have got the message then and had a nasty attack of the "Oh, you've caught me at rather an awkward time, I don't have any spare cash" for any future borrowing requests.

Yes, you misunderstood.

Tim

[MTech535]

In my case, if spoken about, it is a loan. My mate asked me to lend him some money.
In my head I think of it as a gift, as I doubt he will ever have any spare money to pay me back from.

I am sure in his head he will pay me back just as soon as he starts making enough money.

[alorotom]

So the borrower of my cash had a bit of a blow out a few weeks ago when she didn't make her monthly instalment and looking twitter she blew it on hairdo's and a weekend of luxury for her and her new b/f in Croatia with lots of booze ... nice!

Anyhoo she did advise that I was now harassing her and how dare I not even ask how her "sick" daughter was ... she had told me she was in hospital, but this was lies but I wasn't uncovering that hornets nest ... so she said she was sick of all this "hounding", that's one message a month confirming when I'll be paid as she doesn't keep to any perceivable dates, and was told I would get the balance in full 30 April 2017.

So with 5 days to go, I drop her a quick line to confirm the back details for the transfer to be made to and advise a full receipt will be sent when the monies clear into my account to show a nil balance ... and I get abuse back!! I'm not being unreasonable here am I?!? So 5 days and counting, I look forward to receiving the cash!

[xjay1337]

alorotom said:

So the borrower of my cash had a bit of a blow out a few weeks ago when she didn't make her monthly instalment and looking twitter she blew it on hairdo's and a weekend of luxury for her and her new b/f in Croatia with lots of booze ... nice!

Anyhoo she did advise that I was now harassing her and how dare I not even ask how her "sick" daughter was ... she had told me she was in hospital, but this was lies but I wasn't uncovering that hornets nest ... so she said she was sick of all this "hounding", that's one message a month confirming when I'll be paid as she doesn't keep to any perceivable dates, and was told I would get the balance in full 30 April 2017.

So with 5 days to go, I drop her a quick line to confirm the back details for the transfer to be made to and advise a full receipt will be sent when the monies clear into my account to show a nil balance ... and I get abuse back!! I'm not being unreasonable here am I?!? So 5 days and counting, I look forward to receiving the cash!

I don't think you are being unreasonable.

People like that really piss me off. 20/20 hindsight and all that.

[Type R Tom]

alorotom said:

So the borrower of my cash had a bit of a blow out a few weeks ago when she didn't make her monthly instalment and looking twitter she blew it on hairdo's and a weekend of luxury for her and her new b/f in Croatia with lots of booze ... nice!

Anyhoo she did advise that I was now harassing her and how dare I not even ask how her "sick" daughter was ... she had told me she was in hospital, but this was lies but I wasn't uncovering that hornets nest ... so she said she was sick of all this "hounding", that's one message a month confirming when I'll be paid as she doesn't keep to any perceivable dates, and was told I would get the balance in full 30 April 2017.

So with 5 days to go, I drop her a quick line to confirm the back details for the transfer to be made to and advise a full receipt will be sent when the monies clear into my account to show a nil balance ... and I get abuse back!! I'm not being unreasonable here am I?!? So 5 days and counting, I look forward to receiving the cash!

I'd be so tempered to write a big social media post (once you get your money) explaining all this but I doubt it would get you anywhere when loads of people jump to defend her - will all be about the sick child!

[alorotom]

Type R Tom said:

I'd be so tempered to write a big social media post (once you get your money) explaining all this but I doubt it would get you anywhere when loads of people jump to defend her - will all be about the sick child!

something like this had crossed my mind, however, im just going to politely ask that I never hear from her again.

[Type R Tom]

alorotom said:

something like this had crossed my mind, however, im just going to politely ask that I never hear from her again.

Probably for the best

[Adam B]

alorotom said:

something like this had crossed my mind, however, im just going to politely ask that I never hear from her again.

how much is outstanding? If material i would push one last time saying you will pass details on to your solicitor to recover

either way have nothing further to do with her, and warn other friends not to lend

[teapea]

Reading this thread is so depressing, I have had it numerous times too.
If you lend people money chances are you won't get it back.
If you refuse, they probably will fall out with you over that too.

I still haven't heard from my "mate" who I refused to lend money to and I also refused to be a guarantor for on a amigo loan, I think them friend guaranteed loan things should be banned.

The way the market them as if it's all perfectly normal and sensible despite the huge interest rate, if you’re the only one of your friends who's a home owner you end up getting asked, and they genuinely cannot understand why you would say no!

[Hainey]

teapea said:

I think them friend guaranteed loan things should be banned.

I agree and those things amaze the living hell out of me.

Its basically the bank saying 'no way in a million fking years would we give that deadbeat a penny, but tell you what, you be a complete and utter mug and YOU take all the risk for this clown and meanwhile WE take all the profit and if it goes south, which lets face it it will, we get to buttfk YOU dry for the exorbitant amount of cash interest while he smiles and goes about his mismanaged life with a smile.

Great deal huh? For us obviously. For you its a 5 year stress and worry sentence. Now sign here you mug'

Is how I hear the speil when those adverts come on.

[teapea]

Hainey said:

I agree and those things amaze the living hell out of me.

Its basically the bank saying 'no way in a million fking years would we give that deadbeat a penny, but tell you what, you be a complete and utter mug and YOU take all the risk for this clown and meanwhile WE take all the profit and if it goes south, which lets face it it will, we get to buttfk YOU dry for the exorbitant amount of cash interest while he smiles and goes about his mismanaged life with a smile.

Great deal huh? For us obviously. For you its a 5 year stress and worry sentence. Now sign here you mug'

Is how I hear the speil when those adverts come on.

Exactly, amigo loans don't even give the money to the person, so if I be a guarantor for a friends loan, they pay me the money then i have to then transfer the money to my friend,
he then pays them back, but then if he doesn’t pay, they take it off me, I have an immaculate credit history and lots of assets so they're guaranteed to get their money back, and they check that before they lend the money, you need a homeowner with good credit history.

And they get to charge an insane interest rate so, it's win win for them, they must be making a killing.

[Hainey]

teapea said:

Hainey said:

I agree and those things amaze the living hell out of me.

Its basically the bank saying 'no way in a million fking years would we give that deadbeat a penny, but tell you what, you be a complete and utter mug and YOU take all the risk for this clown and meanwhile WE take all the profit and if it goes south, which lets face it it will, we get to buttfk YOU dry for the exorbitant amount of cash interest while he smiles and goes about his mismanaged life with a smile.

Great deal huh? For us obviously. For you its a 5 year stress and worry sentence. Now sign here you mug'

Is how I hear the speil when those adverts come on.

Exactly, amigo loans don't even give the money to the person, so if I be a guarantor for a friends loan, they pay me the money then i have to then transfer the money to my friend,
he then pays them back, but then if he doesn’t pay, they take it off me, I have an immaculate credit history and lots of assets so they're guaranteed to get their money back, and they check that before they lend the money, you need a homeowner with good credit history.

And they get to charge an insane interest rate so, it's win win for them, they must be making a killing.

exactly. Nailed it in one my friend.

In essence their business model is lending money at sky high interest rates to people whose credit history would see them access funding if they wanted it at a tenth of their supplied rate. For example I bank with HSBC and they will do me a loan for 3.something percent just now if I wanted one. Amigo would be ten times that.

Nice business if you can get it amigo. Poke it up your arse.

[bagusbagus]

I lost pretty much my best friend due to money...
After that he knocked up some chick, became heavy alcoholic and heavy smoker and were stealing from shops, the guy probably was the smartest guy I have ever known before that.. what a waste of talent..

[jshell]

Hainey said:

I agree and those things amaze the living hell out of me.

Its basically the bank saying 'no way in a million fking years would we give that deadbeat a penny, but tell you what, you be a complete and utter mug and YOU take all the risk for this clown and meanwhile WE take all the profit and if it goes south, which lets face it it will, we get to buttfk YOU dry for the exorbitant amount of cash interest while he smiles and goes about his mismanaged life with a smile.

Great deal huh? For us obviously. For you its a 5 year stress and worry sentence. Now sign here you mug'

Is how I hear the speil when those adverts come on.

Banks being banks, really. They find ways to exploit anyone, in any way. Much as they are legitimate, they are truly horrible institutions who will sell your Granny for a few %.

However, everyone knows that, and we have no choice but deal with them.

[bobtail4x4]

with Amigo i always think it would be cheaper for the "friend" to take a loan at normal rates and just give the cash to the waster, it would cost them less, and the result is the same.