Need advice on a £1500 loan

Was gonna post this in the Money and finance subforum, but I couldn't post anon there. If mods could ensure that I remain anonymous if this thread is moved, I'd be grateful, or please remove the thread if not.

So basically, my brother owes me over £1500. We agreed on a monthly repayment rate of 200 a month and everything seemed fine. I first lent the money 2 years ago, and it's still owed!! He initially made the payments, but as he paid back money he borrowed more for important stuff, and I'm the only person in my family that actually has any savings cause the rest of them are evidently crap with money. For the past year he's been missing payments all over the place or only paying me £50 here and there.

I got sick of it and we had a bit of a row last night. He flat out told me that he can only afford £50 a month. I'm furious as it's his fault he can afford less now - he's financing a brand new car and the monthly repayments aren't pretty, and got things from catalogues he doesn't need like a PS4. Up to him what he does with his money of course, but at this rate it's going to take another 3 years to pay me back when it was originally all supposed to be paid by now.

I told him that I just want my money back, now. He'll have to get a loan. He said that he didn't want to because the monthly repayments would be too high, but I'm not convinced.

Do you folks know what would be the best option for someone to loan £1500 and pay back around £50 a month, without the interest rates being astronomical? I want to find something affordable for him and present it to him as an idea myself. I'm angry that it's come to this point as I love my brother, but he's taking the piss and something has to happen.

Thanks :smile:

Reply 1

Anonymous #2

Well in my country family is above all so as he is your brother according to the mentality I was raised with you should support him. Nonetheless, it is your money and by not repaying you he is making a fool out of you. I'd suggest that you stop giving him money and wait till he eventually repays you. Ask for your money back and stop acting like a bank. If he wants to get a new car he should be act like an adult and finance it on his own

Reply 2

quackers2003

12

Although it may cause strife in the family, take him to a small claims court. Better if you have a written down plan from when he said 200 a month. If they rule in your favour you MAY have to take his e.g. car and ps4 in lieu of money but u can sell them without him getting a loan

Reply 3

Hamsterboy

5

He's your brother for god's sake, money will come and go don't worry about it, your relationship is more important don't destroy over £1500. Just count it as a loss and start saving up again and learn from it, dont borrow or let other borrow from you, dont spend the money you dont have.

Reply 4

Huw M Thomas

16

Forgive him and write off the debt. You'll feel great and so will he.

Reply 5

nexttime

22

Original post by Anonymous

I'm the only person in my family that actually has any savings cause the rest of them are evidently crap with money.

Given this thread, sure you don't want to revise that?

You're just going to have to keep asking and letting him pay what he can. The alternative is taking him to court, which is a) unpleasant and b) would probably be unsuccessful anyway if you don't have a written agreement/email evidence.

Do you folks know what would be the best option for someone to loan £1500 and pay back around £50 a month, without the interest rates being astronomical?

Given his other lines of credit still oustanding and the fact that its not for something material he'd probably have to go to a loan shark anyway, so yes possibly very high. Certainly, he sounds totally financially illiterate so i wouldn't trust him to get a good deal even if it was possible.

I want to find something affordable for him and present it to him as an idea myself.

It will depend on his credit rating so that might be hard.

Original post by Huw M Thomas

Forgive him and write off the debt. You'll feel great and so will he.

He probably won't be listening due to playing on his new PS4 +/- Xbox, etc.

Reply 6

Huw M Thomas

16

"He probably won't be listening due to playing on his new PS4 +/- Xbox, etc"

It's not necessary that the debtor should be told they are forgiven. Just decide to forgive. It works wonderfully, every time.

Reply 7

Anonymous #1

OP

Original post by Anonymous

Well in my country family is above all so as he is your brother according to the mentality I was raised with you should support him. Nonetheless, it is your money and by not repaying you he is making a fool out of you. I'd suggest that you stop giving him money and wait till he eventually repays you. Ask for your money back and stop acting like a bank. If he wants to get a new car he should be act like an adult and finance it on his own

Original post by Hamsterboy

He's your brother for god's sake, money will come and go don't worry about it, your relationship is more important don't destroy over £1500. Just count it as a loss and start saving up again and learn from it, dont borrow or let other borrow from you, dont spend the money you dont have.

Original post by Huw M Thomas

Forgive him and write off the debt. You'll feel great and so will he.

We're not going to fall out over this and family is also important to us, but come on now. To say I'm not supporting him is ludicrous - he'd be in serious financial crap if it wasn't for me bailing him out. It's taken me all my adult life to build my savings up and I've worked hard, I'm not about to just give up £1500 and write it off when it took me so long to scrape it together. I see no point in taking it to a small claims court - I did write up a spreadsheet showing all his borrowings, dates paid etc and I do feel like I'd win the case, but even so, best case scenario is that he's going to be ordered to repay the money. They cannot deal with how he repays me and by when, all they can do is order him to pay the money. Since he acknowledges that he owes me the money already, taking him to court over it would be useless.

Reply 8

claireestelle

22

Original post by Anonymous

We're not going to fall out over this and family is also important to us, but come on now. To say I'm not supporting him is ludicrous - he'd be in serious financial crap if it wasn't for me bailing him out. It's taken me all my adult life to build my savings up and I've worked hard, I'm not about to just give up £1500 and write it off when it took me so long to scrape it together. I see no point in taking it to a small claims court - I did write up a spreadsheet showing all his borrowings, dates paid etc and I do feel like I'd win the case, but even so, best case scenario is that he's going to be ordered to repay the money. They cannot deal with how he repays me and by when, all they can do is order him to pay the money. Since he acknowledges that he owes me the money already, taking him to court over it would be useless.

I think if you went to small claims then it can go higher if they refuse to pay then it can go to baliffs then. Then starting saying no, you might have to hurt him by letting him get into horrendous debt , he's not going to learn not to buy things he can't afford any other way.

Reply 9

Anonymous #1

OP

Original post by nexttime

Given this thread, sure you don't want to revise that?

You're just going to have to keep asking and letting him pay what he can. The alternative is taking him to court, which is a) unpleasant and b) would probably be unsuccessful anyway if you don't have a written agreement/email evidence.

Given his other lines of credit still oustanding and the fact that its not for something material he'd probably have to go to a loan shark anyway, so yes possibly very high. Certainly, he sounds totally financially illiterate so i wouldn't trust him to get a good deal even if it was possible.

It will depend on his credit rating so that might be hard.

He probably won't be listening due to playing on his new PS4 +/- Xbox, etc.

First bit of practical advice, thanks :smile:

First sentence is a bit unfair, though - when I loaned him the money, he was in dire need and I sat down with him, worked out his finances and how much he'd be paying me back per month and I was totally happy with the arrangement as I'd have all my money back within the year. I just feel like after a while he suddenly decided that repaying me was no longer a priority.

I'll leave the court option out of it as, as I said above, even if I won the case, best they can do is say "yes, you have to pay him the money" but they can't force him to pay me within a certain timeframe, and he already acknowledges that he owes me the money. My problem is that he's just been really lax with the payments this past year. I certainly won't be lending him any more money and haven't done for a while, but I still don't have my money back and unless he can get this loan, I don't see myself getting it back for a long time.

Reply 10

Anonymous #1

OP

Original post by claireestelle

I think if you went to small claims then it can go higher if they refuse to pay then it can go to baliffs then. Then starting saying no, you might have to hurt him by letting him get into horrendous debt , he's not going to learn not to buy things he can't afford any other way.

Thanks. I really don't want it to have to come to that, apart from the money we get along so well and I don't want this to ruin that. The ironic thing is that I lent him the money so he didn't get into debt in the first place, but as it stands it looks like him getting a loan is the only hope I stand of getting my money back within the next few years.