We are working to pay off our cc debt. We now have only two to pay off, however, they are big ones. The CC company has offered to settle one for around 4,000 and one for 5,000 (the balance on both is over 6,000). The settlement offer is only good for one month. They are in collections now, and have a 29% interest. Now here is my dilema. Dh's grandmother has over $400,000 in the bank, he is hesitant to ask to borrow from her. I figure we can pay her off in 1 1/2 years, as opposed to 2-3 with the cc companies. I am working two jobs to make the payments, and I think we should borrow from grandma, not only to lower payments, payoff quicker and clean up our credit, but I can quit my second job sooner. I am exhausted Anyway, what do you all think? I've always heard you shouldn't borrow from family, but it will save us thousands of dollars.

Sounds like too good of a deal to pass up. Maybe if you had some kind of decree for the loan with grandma it would make everybody more comfortable?

__________________
I believe what you think about comes about...
Money comes easily and abundantly!

Be very careful. I would consider it if dh is the only grandchild and if Grandma offered first. Then I would go to a lawyer with the terms and have her attach the agreement to the will. We borrowed money from a family member to buy our house >They offered. We had it done legally through a lawyer and it's been a great help to us. That person gets higher interest rate than the bank, but we get lower interest rate than a traditional mortgage. However, we did have to make all the other family members aware. It needs to be notarized so that if Grandma died, what you owe her would have to be deducted from your portion of the inheritance she was going to leave to you. I wouldn't borrow more than what she has willed to you in her estate. Just my 2 cents ... I don't want to sound like a know it all but this is something we've done so I thought I should pass along what we learned.

__________________

Did Grandma offer? I would do it only if she offers, I would not ask her.

__________________
~Happiness is a large family~

That is a hard one. If you decide to ask grandma I would draw up a contract for all of you to sign. If she is hesitant (or if dh is) this might alleviate some of the worry. It shows that you have every intention of paying her back as quickly as possible.

From her end it would show that you are serious. Since my dh's family all still owes us money I wish I would have done something like that.

__________________
Proud mommy to adorable Kinsley

MY BLOG!

When we were looking at buying our current house, our old house was not sold yet. Dh went to his grandfather to ask for $$ that we knew we would get from our old house when it sold. Grandpa said yes and wrote up a contract. Must be paid back within 6 mo - I don't think that he charged us interest. We bought our current house with a large down payment and paid back grandpa in about 4 months when our old house sold.

Don't recommend doing it for everyone but because it was VERY short term it worked for us.