Sunday, April 27, 2008

I am a woman on a mission.....

Last week I made my first loan payment back to my parents. They loaned me $20,000 to help with the down payment on my condo a year ago. This is why I hate borrowing money from family and/or friends...

So, I was sitting in my parents kitchen yesterday and I asked my mom if she had given the check to my step dad to take to the bank yet. (She tends to forget stuff like that.) He asks what the check is for and I tell him the first payment on the loan. Now, when we set up the loan I was told I could pay them back starting one year after I borrowed it and I could either make annual payments or monthly payments, whichever was easier for me. I thought I would go with annual payments, one less bill to worry about monthly. The terms of the loan were a straight 5% of the total, my understanding was making the total $21,000. Hence, my first payment was $2100. He asked why I wrote it for that much and I explained that it was 1/10th of what I owed and I would pay that same amount annually. He then went into this long winded explanation of APR's and amortization schedules, all of which I understand, so I tuned him out for the next 20 minutes. When he was done, I explained that I understood all of that, but it was my understanding that the interest was again, a straight 5% of the total, but if I was wrong, please, let's get this figured out now so I know exactly what I owe at any time. Oh no! He has this way of trying to make you feel dumb when he is talking to you and says, it's fine, we'll do it your way, even though that wasn't his understanding of the loan terms. UGH!! My poor mom is sitting there very uncomfortably when he looks at her and says, what do you think? She says she is fine with either way, and let's just keep it the way I understood it to be. Then he says, well, it probably won't come out that much different anyway. UGH! Well, now you can bet they are going to get their money back much faster than over the next 10 years! I want this paid back to them ASAP!!! So, it will now be my mission to be able to write them a check every few months for the $2100 and have this monkey off my back sooner rather than later!

And that my friends is why I don't like borrowing money from friends or family!

And by the way, I wanted to say to my step dad, that it isn't his money anyway, it's money my mom got from life insurance when my dad passed away, so what the hell is he so worried about?? But I refrained.......for now! :)

8 comments:

HighClassLowIncome said...

I'm sorry he gave you such a hard time only to come to the conclusion that it probably isn't that different anyway! I guess its a little more motivation to pay them back ASAP

asgreen said...

That sucks I'm sorry! I hope you can pay them back very quickly.

Escape Brooklyn said...

Ugh, that sounds so frustrating! I guess that's why they say borrowing from friends/family isn't always ideal. How awkward for you and your mom!

My sister and her husband borrowed money from his parents before they got married to buy their co-op. They split the debt 50/50 - even though he earns more than she does - and my sister diligently mailed a check to his parents every month to pay off "her" share. Meanwhile, her husband never paid them back a dime, and the parents kept threatening to just take his debt out of their wedding gift, which drove my sister nuts. It was so crazy and stressful!

Escape Brooklyn said...
This comment has been removed by a blog administrator.
lpkitten said...

what a turd face! he should just be glad that you're making good on your loan and stop complaining about it. it's not like he's a bank or something.

SavingDiva said...

I hope to avoid borrowing money from any family members because I know it will be a similar situation...plus, it's just awkward!

L@SpillingBuckets said...

Good luck paying it off as quickly as possible, I'm sure you can do it! I can't believe he would be that anal about it....

I really hope I never have to borrow from family.

Kimberley said...

You had a great month keep up the no spending days!