#LoaningMoney #Family #CarRepossession
##### Consider Your Financial Situation
Before deciding whether or not to loan your relative $800 to avoid car repossession, take a moment to consider your own financial situation. Are you in a position to comfortably lend this amount of money without causing financial strain on yourself?
##### Evaluate Your Relationship
Think about your relationship with your relative. Do you have a history of them only reaching out when they need something? Have they borrowed money from you before and failed to repay it? These factors can play a significant role in how lending them money may impact your relationship.
##### Understand the Risks Involved
When loaning money to family members, there are always risks involved. Consider the likelihood of being repaid, as well as the potential strain it may put on your relationship if they are unable to repay the loan.
##### Consider Alternative Solutions
Instead of loaning the money outright, consider discussing alternative solutions with your relative. Are there other ways you can help them without putting your own finances at risk? Encouraging them to seek financial assistance or counseling may be a more sustainable solution in the long run.
##### Set Clear Expectations
If you do decide to loan the money, be sure to set clear expectations from the beginning. Outline repayment terms, including when and how the money will be repaid. Establishing these boundaries can help avoid any misunderstandings or resentment down the line.
##### Seek Advice from Others
Don’t be afraid to seek advice from trusted friends or family members before making a decision. Getting an outside perspective can provide valuable insight and help you make an informed choice.
Ultimately, the decision to loan money to your relative to avoid car repossession is a personal one. Consider all aspects carefully before making a final decision, and remember that your financial well-being and relationship dynamics are important factors to take into account.
This is a personal decision honestly, not a financial one. I wouldn’t in your shoes but I don’t know you or the situation.
Consider it a gift if you do, not a loan.
Rule of thumb, if you “loan” money to a friend or family, assume you’re never getting it back. If you are willing to gift them the money that you’re calling a “loan” then sure.
Is her situation going to be different next month where she will be able to pay her regular bills plus start paying you back?
Replace the word ‘loan’ with ‘gift’ and then if you can afford the $800 and want to, then go ahead. Never ever expect ever receiving any money back!
I know you’re in a difficult spot emotionally, but I wouldn’t. $800 is a lot of money, and a lot to ask for (or give as a gift). If she’s borrowed almost $900 this month it’s hard to believe she’ll be in a good place with the car next month and you could be just delaying the inevitable and throwing your money away. How is she affording insurance? Could you help her with other cheaper transportation options (bus pass, Ubers?, or a cheaper car)?
No. You’re just enabling her bad decisions. She only calls you when she wants something. Whether her car gets repossessed and the consequences of that are her own responsibility. If she needs help she can get it from her parents, the kid ‘s father, or she can get her life together and help herself. The only help you should give is to refer her to social services in her area.
how long does that buy her? 4 weeks?
Odds are they’ll never pay you back.
Can you afford to give them $800 if they don’t pay it back anytime soon ? If not, you aren’t in a financial position to loan/give them money.
Guaranteed if they can’t pay the car loan, they will never be able to pay you back. This is a gift and put no expectations on it situation if you value to family harmony. If you don’t have $800 to give tell them respectfully you cannot help. If you do help them, even if they pay you back; never give this person money again. Let another family member jump in.
Man. I can see why you’d want to help. But my thought process just keeps going back to the conclusion that she’ll be right back in this pickle in a month or a few months, the car will be gone anyways, and you’ll be out $800.
How big a deal is $800 to you?
If not a big deal, I’d personally just give it to her. Like you said, you already know she’s unlikely to pay you back, and making it a gift will make her very happy and remove any future awkwardness.
That said, if you don’t want to do it, don’t be shy about saying “no”, either now or next time….and there will be a next time.
Don’t do it. Next month she’ll need it again.
Never lend anything to anyone that you can’t easily afford to never get back.
Especially family.
Absolutely not. She is in this place for a reason.
Never loan money, you’re not a bank. If you can gift it without impacting you then go for it. Otherwise, it stays with you. When I pay for someone’s lunch for any reason I always stress they don’t owe me. If they get back someday, awesome, otherwise I consider it a good deed and move on with my life.
1) If $800 is a lot to you then get some kind of collateral to motivate them to pay you back or you can sell if they never do.
2) If $800 is a lot to you maybe just gift them $100-200 and say that’s all you can do.
3) If $800 isn’t a lot then lend them it knowing you’re most likely not getting it back.
Never loan the money to relatives. Just give her the $800 if you decide to help her. Instead of the money being this division between you two. It will be this positive thing that you did for her.
Would you miss it if she didn’t pay it back? If you won’t, then give it to her. If you will then tell her sorry you don’t have that kind of money to loan her.
What happens next month when she can’t pay the car loan? You’re just kicking the can down the road and losing your money in the process.
If you do loan it to her, talk to her and develop a payment plan before you loan. “x amount of your pay for y amount of time until I’m made whole”
As others have said, if she’s incapable of that consider it a gift more than a loan
Two questions: can you afford to lose $800 and does she have the ability to keep the car without “borrowing” more money next month?
Never loan money, only gift it. You’re not a bank. If they pay you back, consider it a blessing.
And it makes no sense to throw away $800 just to delay the repo.
If you’re expecting to get it back, then no. If you don’t have your own financials in order, then no. If you’re feeling charitable and have absolutely no expectation to be paid back and it’s completely disposable money for you, then go right ahead. Prepare to be called constantly for money.
Tell her to sell the car, pay the reminder of the loan for it, and then use whatever is left (if she’s lucky) toward a new to her but used vehicle. $800 a month for a car when you can’t pay your phone bill is outrageous. My payment is $470 CAD per month and I thought that was high.
Like others have said, if you are okay with her not paying you back then sure. You can tell her it’s a loan but don’t expect for it to be paid back.
You can also choose to do a smaller “loan” like $300 or whatever you can afford. It won’t be the complete $800 but she can try to ask other people for more money
Can you afford to give her $800 knowing you’ll never get a dime back? Do you want to help her? Are you okay with this opening a can of worms/knowing she will keep asking for money?
Money to family is essentially a gift. Then they will keep asking again and again. Because of this, I do not give family or friends money.
People fall on hard times so if you can, offer to help as much as you can afford.
To keep them from turning this iinto you becoming their personal ATM, put stipulations around the loan, like when you expect to get paid back (don’t expect to get paid back), and also that this is the first and last time you are going to help out. This will help you give a firm no next time they ask if they even bother.
Also some sage advice someone gave me in case you need reasons to say no altogether – a person who can’t get a conventional loan to deal with liquidity issues is a bad financial risk and so it’s usually a bad idea to lend someone money in this predicament.
What happens next month when her next car note is due? Either make her a one-time gift of $800 (and make it clear it’s one time), or tell her that you just don’t have the money to lend her.
Only loan money you can afford to never see again.
If you do, pay it directly to the payment. To ensure it goes to the car.
Dont give cash or check because she may spend it on something else.
An $800 car payment, working part time. Homie, that car is getting repoed next month. If you are dead set on helping her, let the car get repoed and help find her a beater $800 car.