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The Bank of SG

March 9th, 2017 at 12:36 pm

Having extra money allows you to ways not only to make money you couldn't previously, but you can help people in ways you weren't able to previously. Previously I was figured I needed some work done on my car and had the SG-GF's son work on it to help with his side business. I guess I would have spent the money anyway, but it did give me some flexibility to go do this.

Come forward to a few weeks ago and the SG-GF is looking to get a vehicle for son #2. She's not poor, but she is cash flow poor, plus she is trying to look even poorer to help get son #2 a better financial aid package for college for next year. So to stay "poor" she was working on trying to get a car loan, and the bank was giving her grief. I knew she was very trustworthy, and I remembered jumping through dumb hoops years ago when I was getting a car that didn't prove anything other than the bank *could* make you do that. Well when I buy a vehicle now I pay cash, no more of this BS. Soooooo.... as I heard her story I finally told her to forget it, she can borrow the money from me instead. I had more than enough in the bank, and it was earning next to zero anyway, so what was the point of me having this money sit around? So now I am officially the "Bank of SG". Smile She'll pay me back with interest rate that the bank was offering, but now we'll keep the money "in house".

As an FYI... I am not holding the title for the vehicle, or anything like that. Our relationship is the collateral, and I think that means more than anyone's word to a bank. Plus... if for some reason she didn't pay it back, and the relationship did go south (ain't happening, but just saying...) I will get off a lot cheaper than I did with my EX, so that's another way to look at how I am arranging this. I'm not testing her, but I sure know she is more honest than my EX, it ain't even close.

4 Responses to “The Bank of SG”

  1. creditcardfree Says:

    Car loans and credit card balances are not reported on the Free Application for Federal Student Aid (FAFSA). Paying down debt with cash on hand could be beneficial for some people.

  2. snafu Says:

    How wonderfully generous to be Bank of S&G to SO's younger son. It's an action few would undertake and I hope he is disciplined enough to make the payments on time as detailed in the contract he signs with you. Make sure to write a simple contract outlining vehicle VIN, make, model, payment details like date due, NSF or deficiencies. As an experienced Bank of Mom & Dad, It's important for his generation to understand it's serious to borrow money no matter who the lender or the relationship.

  3. CB in the City Says:

    My cousin did this for me years ago. I probably could have floated a loan, but borrowing the money from my cousin made it simple, and the interest went to her instead of the bank.

  4. VS_ozgirl Says:

    Applying for loans with banks definitely has to be up there with some of the most painful things!!! Totally in agreement with you there. Also in agreement with Snafu- when I was young I would often have to borrow off my mum for expensive car repairs etc and while we didn't have a contract we had a sheet of paper with the starting amount, the amount paid & date and the ending balance. All very good with teaching accountability for your finances.

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