Comments on: The Hazards of Personal Loans http://www.savingadvice.com/blog/2008/05/24/102131_the-hazards-of-personal-loans.html Bridging the gap between saving money and investing Tue, 24 Nov 2009 22:38:31 -0800 http://wordpress.org/?v=2.8 hourly 1 By: Dehoyos4 http://www.savingadvice.com/blog/2008/05/24/102131_the-hazards-of-personal-loans.html/comment-page-1#comment-322958 Dehoyos4 Fri, 30 May 2008 15:21:15 +0000 http://www.savingadvice.com/blog/2008/05/24/102131_the-hazards-of-personal-loans.html#comment-322958 I wrote on this same issue in the personal finance forums. My husband and I did not write out an agreement and we are having to take a loss. We let my brother in-law borrow over $2000 and he has no intentions on paying it back. He has burned a bridge with us. We trusted him but obviously he has no respect and not enough self control over his finances. I do everything I can in my family to insure we save enough money every month for a rainy day. I clip coupons ,look for sales, conserve my utilities, ect. It took me a lot of time to save those $2000 and I feel like all that hard work went down the drain. While them on the other hand are what I call "extreme consumers". Buying everything they want and not necessarily what they need. So be careful when lending money and pay close attention to the person's financial habits. I wrote on this same issue in the personal finance forums. My husband and I did not write out an agreement and we are having to take a loss. We let my brother in-law borrow over $2000 and he has no intentions on paying it back. He has burned a bridge with us. We trusted him but obviously he has no respect and not enough self control over his finances.

I do everything I can in my family to insure we save enough money every month for a rainy day. I clip coupons ,look for sales, conserve my utilities, ect. It took me a lot of time to save those $2000 and I feel like all that hard work went down the drain. While them on the other hand are what I call “extreme consumers”. Buying everything they want and not necessarily what they need.

So be careful when lending money and pay close attention to the person’s financial habits.

]]> By: Karen http://www.savingadvice.com/blog/2008/05/24/102131_the-hazards-of-personal-loans.html/comment-page-1#comment-317236 Karen Sat, 24 May 2008 22:41:30 +0000 http://www.savingadvice.com/blog/2008/05/24/102131_the-hazards-of-personal-loans.html#comment-317236 When I was a graduate student, I had a tuition waiver that was suddenly cancelled one semester before I was due to graduate. My graduate advisor "forgot" to tell me until after the deadline for applying for student loans had passed. I had to come up with the tuition within a couple of weeks, or be dropped from the research program. I never thought I'd borrow from my family, but I ended up going to one of my aunts for help. (My parents were no longer living then.) She asked me to come up with a budget, and sign a loan agreement (although the terms were pretty loose!). Happily, I graduated a few months later, got a job and paid her back within a year. I'm really grateful that she agreed to help, even though it was probably a risky investment for her! When I was a graduate student, I had a tuition waiver that was suddenly cancelled one semester before I was due to graduate. My graduate advisor “forgot” to tell me until after the deadline for applying for student loans had passed. I had to come up with the tuition within a couple of weeks, or be dropped from the research program.

I never thought I’d borrow from my family, but I ended up going to one of my aunts for help. (My parents were no longer living then.) She asked me to come up with a budget, and sign a loan agreement (although the terms were pretty loose!). Happily, I graduated a few months later, got a job and paid her back within a year.

I’m really grateful that she agreed to help, even though it was probably a risky investment for her!

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