Background: I'm a student currently getting money from scholarships until 2020. Hopefully I'll get a job in 2020 but the money stops flowing in around then. I have managed to save up $30k and was talking to a family member, getting advice on what I could do with it to make the most out of my money. This was partly prompted by the fact that he just bought a house and thought it would be a good investment option for me too. Also, we all live in NZ if that makes a difference.
This family member's wife has $12k in a credit card loan at 19% interest and has proposed that I pay that off and he will pay me back at a lower interest (5%) at roughly $100 a week. He also says that if I need the money back desperately (unlikely) that he can use his credit card to pay the rest. That interest rate is currently higher than what I'm currently getting in the bank.
This family member has been very good to me, given me a place to stay for long periods of time, many dinners, etc, and is a bit of a father figure to me. I trust him, but I wouldnt call him or his wife good with money. I regret bringing up money with him haha but I do want to help him out.
What advice can you give me, r/personalfinance?
Edit: thanks for all the advice, long time lurker so I knew how it was probably going to go but wanted to get a second opinion anyway. I messaged my family member and basically said that I wasn't comfortable loaning that amount of money for such a long time, especially with my life being up in the air in just over a year.
Moral of the story: don't talk about money to people who might want some
Submitted October 24, 2018 at 02:12AM by nythyn12 https://ift.tt/2q6EKMn
