Do you take loans from family

[beAsensible1]

I think it pretty normal and reasonable if you/family have means to get or give loans as a family rather than from the bank.

Obviously this wouldn't apply to terminally unreliable or bad with money family.

But why would you do this via a bank, when you can stay within your community?
I'm not sure if this is a cultural difference or class difference. Is this something that you would do, or do you consider this unreasonable and crossing a boundary?

Yes. Better than paying interest to a bank.

If I needed money, family had it spare and I knew I could pay it back I'd rather borrow from them but I hate borrowing

I’d imagine they’re aware their families don’t have the money to loan, or don’t want to risk damaging the relationship if e.g. circumstances changed and ability to pay likewise.

And the idea that family should loan without interest is a bit shoddy really: they’ve lost out on earning interest on it in savings or investments and inflation will mean that the total you pay back will ultimately be worth less in real terms than what you borrowed, if we’re talking large sums repayable over many years.

Its not unreasonable as such, but it requires an openness about money (who has it, who needs it, what you’re spending it on) which is just rare in most British circles. The only bank loan I have had was around £10k, I wouldn’t even know if any family members have that amount of money available to lend.

I prefer to keep my finances private.
I have never borrowed from family.
Family have borrowed from me, one repaid when they promised they would and one didn't.
Huge resentment built up, I felt they shouldn't be out having great fun and holidays because they owed me money.

I will never ever loan money to family again.

But if you choose to make sure there is a payment plan in place and it's in writing.

Lots of people advise against loaning money and it can certainly ruin a friendship but I grew up in poverty where lending and borrowing money was basic survival.

Since I have gotten to be a bit more secure I have loaned money for rental deposits, travel costs to flee dv, to cover Christmas for a close friends kids and to help my mum pay off her credit cards.

Those of us at the bottom of the heap have to help each other out, the bank certainly won’t!

If I needed to. When I was on mat leave my car unexpectedly blew up. I was going to take a small loan to replace as I could pay off as soon as I was back at work. Dad caught wind and said absolutely not, I'll lend it to you, don't pay interest you don't need to. The only issue is getting him to take repayments! I managed to pay almost all of it back before he point blank refused any more and would transfer back any money I sent online. I wouldn't from anyone other than my parents though, and generally I'm pretty good with money so no need. DS came along much much quicker than expected (NHS told me I was infertile and I fell pregnant in less than two months with no assistance). We were still in the middle of renovating the project house we bought thinking we had plenty of time! Managed to cover everything else but the car just wasn't immediately affordable.

When making big purchases that we can’t afford outright (ie work done to our house) family have lent us the money and then we pay it back over x months/years. I’ve always paid everything back. But, they only ever lend the money when they are in a position that they could afford to lose the money

Same as @ZekeZeke I have never had to borrow from family but I have loaned money and it was awful!! I would really really hesitate to do it again. Resentment is awful.

Yes i think good point about making sure they're in the position to lend @Laurendelaney1987 I think sometimes Parents especially can be over exuberant.

I do think depending on the culture or class it might be a discomfort about discussing finances. But i can't imagine ever thinking that my family needed help and just turning a blind if i was able. I do think community helping each other to rise is best

I come from a very working class background and agree it's more common for people to lend each other money. My parents are comfortable now but I remember from childhood, them lending a friend £10 for electric until payday, borrowing £10 for school trip because there was a mess up with wages and they couldn't cover it until it was sorted, or my grandad lending them money when the roof started leaking. Few people had much in the way of savings. It was all discussed quite openly. If you've not got much you don't tend to be as private about finances

I do not discuss money with my family. I would never borrow money and would only lend someone in my family money if I didn't need it back.

My parents loaned us money for a big purchase, which we paid back without interest.

My in laws also lent us money at another point but charged interest (at a lower rate than a bank would)

Personally, if my children were good with money I would lend to them without interest. If they were bad with money I wouldn't give them any.

We are all white British.

We’ve borrowed money from my parents and loaned money to my brother and sister in law. Would only ever loan money we can live without getting back and borrow where we have every confidence we can pay back.

Not too uncommon in my area (south wales) for family to lend. I have borrowed from my mother and sister on the understanding they get it back on pay day or it’s paid back over X amount of months. I have also lent to them when needed. If you can utilise family then I don’t see why it’s an issue as long as you have a good relationship and funds to pay it back.

Loans just aren't a thing in my family or in DH's. We've both been helped out financially over the years and neither set of parents would let us pay them back!

Yeah, currently borrowed money from my sister, to get car through the mot.
It's good to know that people are there for each other, and will lean in when money times are tough.

Best to avoid it if possible. Lending money can so easily lead to strife

Not a usual thing for me but after buying my first house and consolidating all my loans a couple of months later my 4 year old car blew up. My mum offered loan to start paying back 18/24 months later. Really helped me out

a friend is coming to end of PCP and is worried about refinancing for new car or paying off the balance. I've offered to lend her the cash and pay me back at affordable rate

her and my mum are prob only 3 maybe at a push 4 people who I would lend money to

i would give cash (within reason) rather than loan people not worth the hassle

My partner lent 5k to his brother 6 years ago. Never seen a penny back. Has caused a huge family rift.

I did go through one patch years back where I borrowed on a few occasions from my sister who could afford to lend it.
I'd been left drowning in debts by my ex (who was unfindable) & had run up all his bills in my name.

Paid her back every penny (borrowed to help clear one debt completely, then paid it back & borrowed to clear the next until they were all gone) & will always be eternally grateful.

Have since made sure I can be my own banker & borrow from my own savings as I never want to go back to that place again.
I found it far more stressful to owe someone I love money than I would to owe money to a company.
Not because she asked for it, just because at the time it was a massive thing for her to do.

I would lend everything I have to my sister if she needed it.
I wouldn't lend an empty envelope to my brother, who always has his hand out but if you get thanked or paid back at all it's a small miracle (usually prompted by him then trying to borrow even larger amounts).

My dad lent us the deposit on our first tiny flat. He didn’t charge us interest. We paid him back every month til it was all returned. We would have found it difficult to find £8k otherwise.

I'd only borrow from my parents, and then only if we were really stuck (eg a few years ago we had a run of things breaking - oven, boiler and car all in one month). They'd never charge interest on it though (and some of the time they won't even accept it back).

I might borrow a fiver from my sister if we were out and I'd forgotten my purse, but I'd transfer it straight back over when I got online.

We don't really borrow from DH's family, though I imagine if we were stuck they'd help - we'd have to actually ask, though, whereas my parents will come to us and offer.

It’s really common in my immediate family (and DH’s) and culture. We’re all relatively comfortable now but have helped each other with bills and unexpected costs plenty of times. It warms my heart when I think of the times we’ve got each other out of really horrible situations. I’ve helped friends before and it’s usually ended badly there are a few friends I’d help in a heartbeat and know they would too.