- NEW!
by The Chief on September 2nd, 2009
Pay the creditors.
Odds are the borrowed money from friends was because of excessive debts in the first place. If I pay my friends, then I'm STILL where I was before and may end up borrowing again.
Better to pay the debt, which charges interest, removing any potential need to borrow from friends again: this also frees up my finances to pay my friends, who charge NO interest.
by Shemarq the Wamama on September 2nd, 2009
1/2 and 1/2.
by sjane23 on September 5th, 2009
I agree with you, friends would get my money as they were good enough to lend it to me and are individual people rather than a huge company that charges 30%APR, the creditors can accept minimum payment. +4
by Roadapple Cider on September 3rd, 2009
I would discuss it with my friend. If they were well off and were not in a hurry, then fine, I would pay the creditors.
Friend would be first as you can't just go out and buy a new one. Besides, you can work on reestablishing your credit rating. I believe after 7 years that particular complaint is removed.
by Anonymous on September 3rd, 2009
Friends first Mensan :)
by Spacys back on September 3rd, 2009
i dont have credit debt +5
by Evil Pregnant Master on September 2nd, 2009
hmm any other day i would say none and just keep it to myself, but today just dont look to be one of them days, i would say friends cause im in more debt than that righ now so it wont change anything for it to sit longer LOL plussss i love my friends :)
by Suby the Coat on September 2nd, 2009
I would use half the amount to repay the creditors and the remaining half to repay the friends.
For the balance money both groups must wait till I have more money and inclination.
by Nancy on September 2nd, 2009
It would be the creditors; I never borrow money from my friends. However, if on the off-hand chance I did; I would pay most of it to friends and some to hold off the creditors while attempting to make arrangements with the creditors to pay them off as I could afford.
by bk12321 on September 2nd, 2009
im in college, so i kinda need the credit for a house and stuff lol
by Lazs Mouse on September 2nd, 2009
Nope, don't screw your creditors--try to work out payment arrangements with them which will not eat up the entire winnings, then pay off your friends on equal percentages so that they will know you are not blowing them off....
by Happy-Dance on September 6th, 2009
if you owe 5,000 to creditors..they will be happy with a partial payment for now...put aside 1/2 call your creditors and work out payments (do not give the the entire amount at one times..they are like bats and will suck you dry if you let them)..then give the other half to your friends..both will be happy (if they are real friends) because both your friends and your creditors will see an honest effort to payback your debt
What is a Beacon score?
by Answerbag Staff on March 4th, 2011
| 1 person likes this
Does foreclosure affect my credit rating?
by Answerbag Staff on March 2nd, 2011
| 1 person likes this
What is poor credit?
by Answerbag Staff on March 2nd, 2011
| 1 person likes this
How does a voluntary repossession affect my credit?
by z_mclaurin on September 28th, 2006
| 2 people like this
my timeshares paid off for 10 years. I can no longer afford the maintenance fees. tried selling, no luck. how will this effect my credit?
by rasputin1220us on November 17th, 2010
| 1 person likes this
You're reading You won $5,000, & owe $5K to creditors who can ruin your credit rating, & $5K to dear friends who trust you to repay them. Who gets the money? (For me, my friends. To Hell with my credit rating!)
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Comments
I won't lose my friends, for anything at all, even at the cost of a good credit rating.
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Thanks for posting an answer, and here are 6 points for ya.
by Anonymous on September 3rd, 2009
Thanks, Mensan!
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I don't have friends I'd loose over being fiscally responsible. They're my friends: They have a vested interest in seeing ANY of their friends get back on their feet financially! They want what's best for all their friends...which is very likely why they would have loaned me money in the first place.
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:):):)
by The Chief on September 3rd, 2009
I agree with you, in principle, but with me, my friends ALWAYS come before some unfeeling corporate entity that is composed of living beings who are NOT my friends.
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Besides, in my original scenario, the money was WON, as the result of some contest of some kind, obviously, so my earnings from my various jobs will continue to be used to pay off my non-friend creditors.
by Anonymous on September 3rd, 2009
Sure, I can see your point. But one must remember that one's debts didn't happen by themselves. Therefore this is a debt of honor as well.
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Spending your money as wisely as possible, regardless of where it comes from, is always a smart thing to do. Doing so gets yourself out from under those "unfeeling corporate" entities faster, improving your quality of life by increasing your income-to-debt ratio. It immediately frees up more of your money to work for you, in effect, as you will pay LESS overall by doing it this way.
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Paying off your friends first doesn't make your money work harder for you.
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For example, suppose you owe $5,000 to a credit card at 20% interest and your monthly payment is $200. It will take you 33 months to pay it off and will cost you an additional $1,600 ($6,600 total). If you pay it off first, then you can pay your friends $200 a month for 25 months and save yourself $1,600 that you can go partying with your friends on.
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by The Chief on September 3rd, 2009
And if your credit rating has suffered and you have a REALLY high interest rate (like 36%), it will take you 47 months at $200 a month to pay it off, and will cost you $4,400 for a total of $9,400.
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So that last scenario, for example, will have you paying out $14,400 to the credit card AND your friends.
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If you pay THAT card off first, you will only spend $10,000 total and have BOTH paid in full in 25 months instead of 47.
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Paying the card first saves BIG bucks, and your friends get $200 a month that they will LOVE to see!
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And your odds of having to borrow from them again will be much lower.
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:):):)
by The Chief on September 3rd, 2009
You definitely make a lot of sense with your thoughts.
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My original comments stand. Nothing will change my mind, regarding my loyalty and devotion to my friends, especially in THIS lousy, GOP-caused depression.
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But I respect your opinions just the same, and thank you for sharing them, of course.
by Anonymous on September 3rd, 2009
As long as it works for you!
by The Chief on September 3rd, 2009
It does!
by Anonymous on September 3rd, 2009
Don;t worry about the GOP depression, Oblabba will get us all into it and there shall be none left alive. No, not even children :)
by EmptyWallet on September 22nd, 2009
HAHAHAHA!
by The Chief on September 22nd, 2009