Comments on: Rules For Handling Financial Issues With Extended Family

By: Gina

Gina — Wed, 18 Apr 2007 19:52:38 +0000

I’m trying to find advice for my father in law. His wife recently died and my husband and I moved in with him to care for him and handle his finances. The problem is his youngest son and newlywed wife was being allowed to live with them to catch up on bills and save money. The son’s newlywed wife is due in Sept. Anyway everything the youngest son and the wife gets in a bind the father bails them out. How can they learn to live on their on and save for the future if they depend on him. I handle the bills and all for his father and my own budget. What can I do?
Any ideals please email me at ginasledet@bellsouth.net

By: Trent

Trent — Thu, 15 Feb 2007 18:34:38 +0000

In either case, you should sit down with the person you borrowed money from and make it very clear what the expectations are on both sides. Once this is clear, write it down and perhaps get it notarized.

It’s very difficult to give general guidelines about how to repay such a loan, because it heavily depends on the relationship between the two people and also their specific financial situations.

The most important part is to communicate what you’re thinking and making sure that the other person does as well, so that it doesn’t end with hurt feelings and a damaged relationship. If you’ve already had the courage to ask for and borrow the money, use that same courage to make sure that things don’t go awry.

By: Michelle

Michelle — Thu, 15 Feb 2007 18:23:49 +0000

Hi Trent — first comment on your site — I hope you see it, in spite of the long lag since your post.

Let’s say you have already borrowed money from a family member. Do you have any recommendations on how to handle that obligation? Two cases — one where you can make payments starting immediately, the other where it will be a while before repayment can begin.