Borrowing from family

liveandchi · #1 (**permalink**) 10-28-2004, 09:37 AM

Is it appropriate or a good idea to borrow from family members? I can probably baorrow some money from my sister which will help in our financial situation, but I'm not sure if that is a good idea or not. Has anyone borrowed from their family before?

terry1156 · #2 (**permalink**) 10-29-2004, 07:34 AM

I would think long and hard before borrowing from a family member. I don't think it is appropriate for you to ask. By doing so you put them in a very uncomfortable position. If they offer, I think you should write up a formal contract to show that you are serious in paying them back.

byusteeler · #3 (**permalink**) 10-29-2004, 12:23 PM

I think it depends on the family, which member your borrowing from, what you need it for and how much money you're talking about. My grandpa always charged interest and required monthly payments even when lending to kids and grandkids. Afterall his the interest on his savings is what my grandma had to live on after his death. You got a bargain compared to the going bankrates but you didn't get a free ride. We borrowed from mom for an adoption attorney and my father-in-law to help with my sons college tuition. The adoption money was paid back long ago and the college money is more recent and we are still working on paying it off.

liveandchi · #4 (**permalink**) 10-29-2004, 10:37 PM

Do you think it would be appropriate to float the idea first? I don't want to put anyone in a postion that they feel pressured to help us. Maybe if I said we were looking for different ideas to help reduce our current debt and see if they make an offer to help? Any ideas?

byusteeler · #5 (**permalink**) 10-30-2004, 11:32 AM

Like I said it depends on who. How good is your relationship with the person you would be asking. I know if my kids needed help they know they can come to me and ask and if I think it is really needed and I have the money I would help. Same with my parents and grandparents when they were alive. I would not ask my brothers for money not would I loan them money unless it were something really big like a major medical catastrophe or national disaster or something. Use your own judgement you know what kind of relationship you have with the people you are thinking of asking.

byusteeler · #6 (**permalink**) 10-30-2004, 11:35 AM

P.S. Just my observation. If you are stressing this much about asking or bringing it up. I would say you probably don't have the kind of relationship where asking would be a good idea.

liveandchi · #7 (**permalink**) 11-10-2004, 02:47 AM

I have put this idea on hold for awhile. If things become really tight and I can't think of any other way, I may come back to it, but for now I will try and reduce the debt on my own.

vendigirl · #8 (**permalink**) 11-10-2004, 09:46 AM

Good for you. It's stressful owing family members money- even if they are excellent about it. Somehow that feeling of "owing" goes far beyond the funds borrowed.