DAVE RAMSEY

Dave Ramsey says: Borrowing large sums from family isn’t worth risk

Jan 29, 2019, 11:30 AM
(Unsplash.com Photo)...
(Unsplash.com Photo)
(Unsplash.com Photo)

Dear Dave,

My father-in-law wants to help us with our mortgage.

We’ve been working hard to pay off our home early, and we’ve reduced what we owe to around $35,000.

His idea is to pay off the remainder, then let us pay him back over time.

In the past, he has loaned us much smaller amounts and everything has worked out fine.

What do you think about this?

— Brianne

Dear Brianne,

I’m sure this seems like a winning proposition all the way around. My concern is there’s a big spiritual and emotional issue that has been left out of the equation.

The borrower is always slave to the lender, and nowhere is that more true than in a family.

I understand, too, you have a solid track record with this kind of thing.

But anytime you borrow money from family you’re playing with fire. When you do something like this, especially with such a large amount, the money issue is likely to be a shadow hovering over your relationship.

Family get-togethers, special events, and holidays will feel different when you’re there with your lender instead of just good old dad.

I assume your father-in-law is doing well financially, since he can afford to make this offer. And don’t get me wrong, it’s a very kind and generous offer.

If I were in his shoes, I might offer instead to pay off the mortgage as a gift to my son and daughter-in-law for working so hard to attain a goal. But it would be a gift. No strings attached.

If you have a nice, stable family, this debt will always be there in the back of your mind.

If you have a dysfunctional, control-freak kind of family, it’s going to be right there in front of you constantly.

Either way, I don’t think it’s worth the risk.

— Dave

Dave Ramsey

(Pexels Photo)...
Dave Ramsey

Dave Ramsey says: It’ll take lots of discussion and planning to run a business

Everyone wants to be successful in their job, enjoy what they do and make lots of money, but personal happiness is just as important.
3 days ago
(Pexels Photo)...
Ken Coleman

How to identify and handle hostility in the workplace

A hostile workplace can curtail your career and your mental health. Learn how to handle hostility in the workplace.
5 days ago
(Unsplash Photo)...
Dave Ramsey

Dave Ramsey says: Be honest in uncomfortable situation explaining better job offer

When handed a great opportunity shortly after starting a job elsewhere, walk into your boss’s office and lay out the whole situation truthfully.
10 days ago
(Pexels Photo)...
George Kamel

How to manage finances with inflation through the rest of this year

Whether we want to admit it or not, inflation is here, and there’s plenty of ways you can beat it through the end of the year.
12 days ago
(Flickr Photo/TaxRabate.org.uk)...
Dave Ramsey

Dave Ramsey says: Pay off credit debt, then keep rolling to straighten finances

When the rule of paying off debts from smallest to largest doesn’t apply, attack the one with the larger interest rate first.
17 days ago
(Unsplash Photo)...
Kristina Ellis

Here are 3 easy ways high school seniors can increase their productivity

If you're a high school senior, it’s so important to get your priorities set and get your life organized as you start this academic year.
19 days ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Dr. Richard Carmona

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.
(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
Dave Ramsey says: Borrowing large sums from family isn’t worth risk