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Your Own Personal Loan Shark

Imagine paying outrageous amounts of interest to a greedy finance company and loving every minute of it. Or how about making off-the-record, back-alley deals with a loan shark so you can skip all the credit checks and paperwork?

a smiling cartoon shark dressed in business suit as pawn shop owner

Impossible? Not if that loan shark is you. You’ll be borrowing from yourself, making payments to yourself and collecting high rates of interest—all from you, for you.

The original idea of the credit union was to get the little person out of the clutches of the big money institutions. Credit unions are still a good idea! But even credit unions have their limits and standards when it comes to qualifying for personal loans. Being your own lender simplifies even the credit union strategy to just one person—you. And when you’re wearing the loan officer hat, dealing with you the borrower, both the lending and repayment benefit only you. What a deal!

So, how does it work?  Read more

Sticky Situations: Lending Money to Family, Kids and Their Parents’ 529 Savings Plans

There is an old adage that warns, never lend money to family or friends. And if you’ve managed to adhere to such a thing when someone you love has been in a real bind, it’s possible that you’re much stronger than I am and I dare say, most of your fellow readers as well. The secret is to help if you can, but in a way that strengthens that relationship, not destroys it.

 

Male and female hands exchanging a stack of 100 dollar bills

Does the Lender Get a Say?

Dear Mary: Last month I lent my sister $500 to pay for her rent since she said she was in a jam. Well, it’s been months now and she hasn’t paid me back, yet she’s eating out every day and getting a weekly manicure! Needless to say, I’m angry. What can I say to get my money back? Seething in Seattle

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