Greetings -- This is my first time here and I am not adept enough to add a flair, sorry!
TL;DR: What would be a fair interest rate on a $6,000/20-month personal loan from a family member?
Actual story: 20 months ago, my now ex-husband cut me off from all marital funds. I borrowed $6,000 from a family member for my attorney's retainer. At the time, my attorney thought that we could get a settlement within six months and I told my family member that I would pay him back then.
That didn't happen, so at the six-month mark I offered to start paying in installments or take out a personal loan to repay him, since I was then in a better position to do so. He declined and told me to pay when it was all settled. Of course, this doesn't matter as far as what I will pay, but I'm just adding it to show that he was not hurting for the money.
It's now been 20 months and settled! I will be going to my bank to get a cashier's check tomorrow. My family member did not mention interest but I would like to include it since he did not have use of this money for 20 months. What would be a fair amount? $300, $500, $600? If it matters, my family member is pretty conservative financially and it is highly unlikely that he would have been making high-growth, high-return, high-risk investments.
And for the "personal" part of personal finance -- because of our respective financial positions and cultural/family considerations, my family member would be offended if I were to give him what he saw as a gift of money. I want to be fair and I'm perfectly willing to be generous, but I don't want to repay his kindness and helpfulness in a way that he would find offensive. (I have been baking a lot of cookies and making freezer meals, though!)
Submitted May 18, 2017 at 03:12PM by legalbyebye http://ift.tt/2rw3bCF
