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My husband’s brother borrowed $40 000 from his father to buy a jazzy car.   A year later, he was tired of the car and viagra 25mg pills $140.00 sold it.   When it came time to settle up the loan, father and son disagreed on the amount to the tune of $3000.   What ensued was a lot of nastiness about who was being ripped off.   By Christmas, they were not speaking, and brother-in-law and his wife were noticeably absent, which of-course upset his mother and the rest of the family.   I’ll bet you, or someone you know viagra 25mg pills $140.00, has a similar story.  

If you are going to be either a borrower or a lender at the Bank of Mom and Dad (or Grandma and Grandpa or Favourite Auntie), there are some things you should consider.  

What is the interest rate going to be?

Lending a few hundred bucks to a relative in need probably doesn’t warrant interest, but if it’s a longer term loan for a large amount, yes, interest should be charged.   Now before you start getting indignant, yes, I know, it is family.   Keep if fair.   If the cash is coming from a GIC that’s paying 3%, then set the interest at 3%.    

How will this impact your credit?

If you can’t get a loan on your own because of no credit or poor credit, look into getting a joint loan.   This will show up as a debt for both parties until it is paid and both will be accountable to pay it.    A loan is a good way to establish credit.   

Can both parties honestly afford it?

If either party has to start skimping on meals, they can’t afford it.   Parents shouldn’t remortgage their home to pay for a wedding.   It’s also not much fun having a car if you can’t afford both the payments and the gas.

What happens if one of you dies?

If the lender dies, will the loan be forgiven or paid out to their estate?  If the borrower dies, will the surviving spouse continue the payments?  Will surviving siblings try to bully things a certain way?  Are there written instructions anywhere?  Yes, I know, answering a question with yet more questions isn’t fair, but it’s important to consider.   Written instructions avoid arguments.

At the end of the day, doing business at the Bank of Mom and Dad can benefit both parties if it’s handled with respect.   There are all kinds of loan calculators on the internet, so play around with different terms and payment schedules until you find one that fits your situation.   Put the deal in writing, and if things change in the future, put that in writing too. Viagra 25mg pills $140.00 if mom and dad can help out their kids and make a little interest, they won’t feel used.   If kids can get a better deal and easier payments, they don’t feel ripped off.     When Christmas dinner rolls around, everyone can look forward to spending time with the family. viagra 25mg pills $140.00] style="yes;">   


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