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Funny how things change. difficult child wanting a loan
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<blockquote data-quote="SuZir" data-source="post: 597165" data-attributes="member: 14557"><p>We don't have similar credit rating system as yours. So 'building a credit' is not something of concern. He does have guaranteed income only for year and he doesn't have a profession that would be considered safe. He doesn't have any property that could be used as a security. He would not get a loan for longer time than a year. And the amount of loan he wants is bigger than what any reliable source would give him. His pay back plan would be considered far too optimistic because his income is little untypical (and bank would count only part of it as an income) and some of his expenses are smaller than what is considered reasonable by creditors. So according to their math, difficult child would not be able to pay what he actually can. We would need to give a personal guarantee for him to get a loan. And even with that the interest would be high.</p><p></p><p>And let's face it, we don't feel good about giving a guarantee. He has matured and I believe he would make an earnest attempt to pay the loan. But if things would get hairy, he could easily panic and start to lie about it. And that could end up with us being in quite a mess (no, we wouldn't get information before it was a mess from the bank.) It could turn so ugly, that it is certainly not worth the risk. If we loan him money ourselves, we are in much safer place with it, both in getting the money and the emotional costs.</p><p></p><p>And husband just suggested the way to take off even more of emotional liability if we would sell him our car. We could give it to him against the deposit (he has about two grands saved, he could use to car) and give him account number to difficult child's own money market account which he doesn't have access before he is 25. He would never make an effort actually check to whom he is paying, so he would believe he is paying to some of our savings accounts. Would take a lot of emotional cost off if difficult child isn't able to pay, because we would consider it his money anyway and would also be a neat little piece of tax planning. Not totally 100 % legal, but something you never get caught, because we could always claim that car wasn't worth more than that two grands because of reason x (which no one could prove false.)</p></blockquote><p></p>
[QUOTE="SuZir, post: 597165, member: 14557"] We don't have similar credit rating system as yours. So 'building a credit' is not something of concern. He does have guaranteed income only for year and he doesn't have a profession that would be considered safe. He doesn't have any property that could be used as a security. He would not get a loan for longer time than a year. And the amount of loan he wants is bigger than what any reliable source would give him. His pay back plan would be considered far too optimistic because his income is little untypical (and bank would count only part of it as an income) and some of his expenses are smaller than what is considered reasonable by creditors. So according to their math, difficult child would not be able to pay what he actually can. We would need to give a personal guarantee for him to get a loan. And even with that the interest would be high. And let's face it, we don't feel good about giving a guarantee. He has matured and I believe he would make an earnest attempt to pay the loan. But if things would get hairy, he could easily panic and start to lie about it. And that could end up with us being in quite a mess (no, we wouldn't get information before it was a mess from the bank.) It could turn so ugly, that it is certainly not worth the risk. If we loan him money ourselves, we are in much safer place with it, both in getting the money and the emotional costs. And husband just suggested the way to take off even more of emotional liability if we would sell him our car. We could give it to him against the deposit (he has about two grands saved, he could use to car) and give him account number to difficult child's own money market account which he doesn't have access before he is 25. He would never make an effort actually check to whom he is paying, so he would believe he is paying to some of our savings accounts. Would take a lot of emotional cost off if difficult child isn't able to pay, because we would consider it his money anyway and would also be a neat little piece of tax planning. Not totally 100 % legal, but something you never get caught, because we could always claim that car wasn't worth more than that two grands because of reason x (which no one could prove false.) [/QUOTE]
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Funny how things change. difficult child wanting a loan
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