Loan Advice
Post Fiend
Joined: Mar 2007
Posts: 26,966
Likes: 50
From: Texas
You're not going to get a real loan that is reasonable given your circumstances. Your best bet is to sit down with your buddy and explain to him you need to make payments to pay off your debt. Work out a reasonable interest rate for him to finance the note, put it in writing, and pay him according to your agreement.
Moderator
Joined: Aug 2005
Posts: 164,379
Likes: 82
From: MA
I wouldn't take out a loan to pay off your buddy.. You will end up paying more in interest.. Just pay your buddy what you can comfortably afford every month until it's paid off.. Chances are you don't have to pay him interest unless you agrreed to it when you borrowed the money..
If he wants his money right away borrow it off a family memeber if you can..
Go to a credit union or a bank last..
My 2cents
If he wants his money right away borrow it off a family memeber if you can..
Go to a credit union or a bank last..
My 2cents
Post Fiend
Joined: Jan 2003
Posts: 10,323
Likes: 2
From: Montana Territory
Most banks and credit unions that I am aware of will require a co-signer for amounts over $1000. There is no way that $150 a month is going to qualify for any loan. $500 a week will though. You can use that for a reference when applying for a loan as long as whoever pays you will verify the amount.
Getting a loan and paying your friend is a good step in growing up, you'll be involved in loans and paying them back for the rest of your life, you might as well get started now and get some good credit history. If your good about it, it will end up saving you a lot of money in the future.
You need to be honest about your income and legally pay the taxes on it. Like it or not, its felony tax evasion. I know more than a few people that ended up paying 5x their tax liability because they hid it from the IRS in the first place.
Getting a loan and paying your friend is a good step in growing up, you'll be involved in loans and paying them back for the rest of your life, you might as well get started now and get some good credit history. If your good about it, it will end up saving you a lot of money in the future.
You need to be honest about your income and legally pay the taxes on it. Like it or not, its felony tax evasion. I know more than a few people that ended up paying 5x their tax liability because they hid it from the IRS in the first place.
Government Teat-sucker
Joined: Oct 2003
Posts: 9,748
Likes: 1
From: Virginia Beach
"If you loan a friend $50, and he never pays you back, was it worth the investment?"
I guess you already borrowed the money, but I would resist the urge to do so ever again. It puts unnecessary strain on a relationship. The same is doubly true about borrowing from family. However, regarding the loan from a bank... When I was doing the financing for my truck, my income was a little short, but they put down my delivery tips as income. At the time I was making about $500 a week at that job, so maybe they'll consider your untaxed income. Definitely better to owe a bank than a buddy. You can tell a bank to 'shove it.'
I guess you already borrowed the money, but I would resist the urge to do so ever again. It puts unnecessary strain on a relationship. The same is doubly true about borrowing from family. However, regarding the loan from a bank... When I was doing the financing for my truck, my income was a little short, but they put down my delivery tips as income. At the time I was making about $500 a week at that job, so maybe they'll consider your untaxed income. Definitely better to owe a bank than a buddy. You can tell a bank to 'shove it.'
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