Stop With the Drama! 

lol I was dying

Lecture loading

That depends on how much they were paying for rent. It's not unusual where I live for people to claim paying a mortgage would cost them less each month than renting but because they are renting the don't have enough left over to save for the down payment. If any of my children needed a hand up I wouldn't hesitate to help them, same as my parents helped me, and same as this lady's in laws have helped her and her husband.

And it wasn't.

Yea its a 2 party agreement, why is that a bad thing?

Was absolutely not a nightmare though. They lent the money to family that needed it at the time at a rate in-line with what any high yield savings account is producing right now. The terms were more favorable than the caller getting a personal loan which would have run them near 8-10% with the same three or four year term. AND the parents are getting paid back early. Sounds like a win-win for everyone. If you have money and are able to assist your family responsibly and they have the means to pay it back there are no issues with interfamily lending. The issues arise when loans are given out as leverage for future power over someone in a relationship. Or as a means to control someone else. Which doesn't sound to be the case from the caller.

Did you NPC’s even watch the video?

@@brett4932 Dave cult followers think he is always right.

Right?! 🤦‍♀️

Listen for what? She was.

@@jimmymcgill6778 She was over talking and interrupting. It could have been a lag, but that is an annoying character trait.

@@LipstickNWhiskey But you're OK when Dave does it? Dave was assuming a lot about her and the family. She was correcting him and telling him that he was wrong.

@@jimmymcgill6778 He never said they weren’t good people nor was he implying it. Lastly, you’re a hypocrite for saying Dave makes assumptions when you assumed I think it’s ok if Dave does it. Get your head out of your behind and actually think before you type.

They are earning 4.5%, if you pay them down then they will make less return on there money. Why is a two party agreement a bad thing Dave, what are you talking about?

👏🏽👏🏽👏🏽

No. They could get 5 percent in a HYSA. They just want the control over them

That and it’s hard to say “don’t come over” when you’re indebted to them.

No. They could get 5% in a HYSA. They just want the control over them!

Idk. The 40,000 loan the inlaws could be making interest on it had they not loaned it. But pay it off quickly Iike any other loan.

Entitled much? Or, be an adult and don't put your family in that position because you're bad with money. 😂😂😂 Blaming the person you need money from is ultimate entitlement.

And if the baby needs emergency surgery in Thailand or something the in laws will of course be there to help again. Probably as a gift not a loan.

Just hope and pray nothing bad happens in the meantime.

@@ArsenicApplejuice And how is it any different if they do nothing now? Are you going to go through life worrying that something bad is always going to happen? Why not think good things are going to happen? It's a much lesser stressful life.

@@USMC6976 by that logic why even bother with the emergency fund?

@@ArsenicApplejuice Unexpected expenses. Another stress reducer. And it helps build the habit of not spending every dollar you get your hands on, helps you break the bad habit that got you into the debt hole in the first place.

They have another loan that's more risky than the family loan. It is called a mortgage!

It was a dumb argument...she said what if you loose your job and you have the debt...ask a million people on the street would they rather loose their job when they have 23k in debt, but 28k in cash, or when they are debt free and only have 3k in cash...99.999999999% of people would rather have the first one...

They really didn't, though.

Right I wouldn't call if I didn't want to hear the solution.

Some people just want to hear themselves in the radio

Was that the one who agreed he would pay off $200 per month then got upset that he was only paying $200 per month lol

​@@TonyCox1351yes lol

@@TonyCox1351i recall that one, 250 per month was the verbal agreement and the mother calls in asking if she can now make an agreement lol, like lady the 250 was the agreement And she made her son sound like a slouch when in fact he was paying faithfully the agreed upon 250 per month That one really got me!

And the savers carry the burden of the non savers every day of the week and twice on Sunday

And once again, just ANOTHER example of the best advice and common sense the Bible offers......people should read it MORE often AND practice it's wisdom and teachings...

Banks are sneaky like that.

I heard that.

Amazing people

That much? I think it is entirely reasonable to have an a written agreement with interest.

The parents are people who could be making interest on that $40,000. They are simply paying the lost amount of interest.

You're right . I just wouldnt loan you money at all if you were my kid

I would and I did. Worked out fine, no problems.

In-laws likely won’t take your house from You if you need a break or run Into trouble. Did 5 year interest only balloon loan with an extension option at 1% with ours to help us relocate for a much better job opportunity during the COVID housing bubble so we could lock in a 2.875% mortgage with the bank for a house we can grow into as our family grows. We have 10k left to pay off. If we didn’t do this we would need to move this year and incur closing costs and relocation expenses again and get a worse mortgage rate. That would be more than 50k.. It was a cash flow timing issue. And they helped us through it. Just a personal experience

Not everyone has terrible in laws.

I doubt a bank would give money to a kid.

Doesn't matter if the in-laws are literally saints - a bank takes the guilt and potential emotional blackmail out of the equation. Besides, doubtful if you are going to sit next to the loan officer at holidays.

I agree, but I'm sure they couldn't get 40k from a bank whilst also taking on a new mortgage.

My father loaned my wife and I $25k to buy a house...no mortgage. We already had 75 percent of the money and the mortgage we would have got was outrageous in our view. My father had they money, and did loan it to us. 3 months later, after we settled in, Dad got a nice check in back with that money owed. He was surprised we paid him off that quick. He was expecting it back in 5 years. He accepted it. The only reason we did this was a cash flow situation. Needed to let a CD mature properly to get that last bit of cash. We got it addressed quickly. Every family is different. FYI, my father did talk clearly before we did this.

​@@rahuliyer7456 My father wouldn't have gave me a dime but instead said "good luck to you"..

I agree, but this was for the down payment. They probably wouldn't be able to get a bank loan for that, since they were already taking on a bank loan for the house. This is where they otherwise needed to save for their down payment, per the baby steps.

@@DoctorSmartyPants yeah good point. I would’ve just saved up to avoid family still haha.

That’s a big loan from relatives. And they are probably good with money which is why they have it to loan.

Yea, that was a shocker.

Yeah, they're losing money from interest by loaning the money out

@@janise01You beat me to it. They are charging the interest they could have made.

My own parents charge me interest on a loan but again I never had a good relationship with them.

I was thinking the same thing. 😊

Reminds me a lot of Vanessa from The Cosby Show

Simp

SHE"S MARRIED.

What about Dave's hair?! 😂😂😂

I’d still rather go to a bank. Dave is right, when you owe people money, or if they owe you money, it makes things awkward, until it’s paid in full.

Yeah the only way I'd accept a loan from family would be to get 0%, anything above 0 and I'm going to a bank lol

Maybe they pulled it out of a bank where they were getting 5.25% Sick of entitlement

It’s legally required over 16/17k per year

Why not charge interest? Money is not free.

​@@sarikagoode1505why would you want to profit off your own children?? Anything above 0 just go to a bank

@@droid2D2C3P0 No that’s not profit. It’s cost of money. You can get 4.5% by depositing it in a HYSA. If you lend it for free you are paying your in-laws to take your money.

@@sarikagoode1505 it disgusts me that you think of charging family interest because the banks do it too. Are you going to send your kids an invoice at 18 with a list of all the childcare expenses and a payment plan? I hope you don’t have kids so that idea ends with you.

@@ganymedehedgehog371 When you have kids, until the age of 18 the parents are fully responsible for their care, physically, emotionally and financially. There’s no invoice handed out, that’s absurd. Having kids is a choice, so you better have the money to pay for that choice. However when the kids turn 18, they become adults with adult responsibilities. Buying a home is an adult responsibility. The in-laws did these people a tremendous favor by essentially lending them money at below cost. True inflation is way above 4.5%, so even by charging that interest the in-laws are losing money. Not everyone is meant to be a homeowner, but because of generational wealth this couple was able to do it, and have the ability for the wife to stay home with the children as well. The least they can do is compensate the lender the minimal amount they are charging.

Entitled much? Or, be an adult and don't put your family in that position because you're bad with money. 😂😂😂 Blaming the person you need money from is ultimate entitlement.

​@@Mr.Boring_Man family is different compared to getting a loan from the bank. Family money should be gift not loan. But people, mostly Americans are selfish AF.

@@TonyStark-wr7ob - Someone else's money should be a gift. The entitlement is baked into American culture. Or... OR... live below your means. IJS!! This mindset is insane to me. Mistakes with no consequences. We just don't view the world the same is all.

Some cheap ass in laws...

Personal loan through a Bank would be a lot higher than 4.5%

You should be earning your own money for a house.

That'd make me feel uncomfortable as they might eventually decide they want their money back. Hopefully that doesn't happen.

​@@Dreamer-by4nk you're just jealous of his situation. Parents are supposed to make your lives easier. If you dont do that for your kids, you're on the bad parent fence

@wevibin375-lol I raised my kids alone and they grew up supporting them selves and building successful careers. I wouldn’t say that’s bad parenting. And no, clearly no jealousy here.😂

@@Dreamer-by4nk you didn't have the resources to give them but chose not to. So obviously you dont fall in that category...comprehension is a good skill to have

I believe her husband works for him, too.

Yeah, interesting dichotomy.

Never thought of it like this 😂

Did Dave hurt your feelings?

Nothing wrong with having a family business, and I’ll bet she was raised up to be qualified for the job. I don’t see any issue there.

As they should

Why would they laugh at you for that.

@@Heavens-Humanaterian-Army because that’s pathetic. Why else.

cancel yoga class. That's an extra. You're choosing between food and yoga? No...

We dating for real.

"But that's not what Dave Ramsey would recommend." Many of the people watching/listening to this channel are mindless sheep who can't think for themselves. No different than the current political landscape: you're either team blue or team red. Very few true independent thinkers out there.

This is exactly the comment I was gonna make!

He’s probably a quiet worker type which balances the talkative wife.

@@1jw298facts 😅

Every disagreement is teetering on…you remember when you needed money???

You're correct. It is literally that simple. A mountain is being made out of a mole hill. They could likely even pay a majority now and rest later so they don't dip below $10K.

​@@cyoohoos: Not everyone has in-laws that act like adolescents. 😉

The lender loses opportunity cost. They don’t get poorer in absolute terms, they just end up with less than they could have. But I don’t think that should be the impetus to pay it back early - they should pay it back early because it’s family

​@@danieljohnson4418It is a loan. In this context the fact they are in-laws are irrelevant.

They aren't building their credit when they pay a mortgage in your name. They shouldn't be buying homes if they don't have the credit and/or finances to do so in their own names.

​@@jgjg3848: Cool opinion.

Dave just hates family.

@@silentnot4812Congratulations. It seems like you’re a millionaire.

Not aware of any law that dictates how much, if any, interest should be charged between family members. However, if the family member is getting interest, by law, that is reportable taxable income. As to the last question, since it is a personal loan, no there is no allowance to claim interest paid on personal loans.

Correct. It's called imputed interest. You must charge a a certain rate of interest & pay taxes on it. Poeple have no idea about IRS rules.

I guess you've never done it yourself. It creates stress for the relationship.

Their anti debt stance is too extreme. They have paid back so much so fast that it's ok.

@@DoctorSmartyPants It's all in your heads.

Owing family tens of thousands of dollars changes the vibe of the relationship especially if there’s interest charges. The parents are scum for charging such high interest and the caller is stupid for taking the loan.

What’s the problem with staying home with kids? You’d rather they pay somebody else to care for their own kids and both of them work like dogs to pay someone else to raise their children?

They could NOT have gotten 3% from the bank. Those days are long gone.

@@droid2D2C3P0 She said it herself, that the bank loan assumption was 3.1%

There’s no way they get money out of a bank for 3.1%. Many banks are paying depositors 4%. That would be the dumbest business move ever for the bank. Cheapest money I see right now is 9% if you put your house up for collateral (HELOC). The in-laws are taking a loss on the money right now as it is, as real inflation is way above 4.5%.

Oh, I get it now. They assumed a mortgage loan, which was already at 3.1%. However, to get this loan assumption, they needed a 40k down payment, which they borrowed from his parents at 4.3%.

@@DoctorSmartyPants So the mortgage they took over was 3.1? I never heard of a loan assumption before.

Needing a loan at all is proof they are not smart with money.

@@amireallythatgrumpy6508 They had an opportunity to assume a very low interest rate on the house they were buying. They didn’t have the cash on hand to have been able to assume the loan but clearly were and still are in a very good financial position. The loan was needed to assume the loan, not buy the house. They had plenty for that already.

You don't know the reason why they added the interest: - maybe it is from their retirement fund that pays a higher percentage - maybe they are offering a rate that's below the amount they would have been on the hook for, if they got a personal loan - maybe they wanted to put interest on it to discourage the tendency not to pay the loan back in a reasonable time. - ETC Without knowing the context, you can't talk down on the reasons for others taking specific actions.

She wasn't even upset by it grow up, you're just crawling through these comments posting incorrect shit. Shut up.

I loaned $50K to my sister for a week, The home they bought ($230K foreclosure) on the Courthouse steps cost $36K CASH only. In less than a week to pay me back.

It's supposed to be a number that makes you intense about paying debt off.