My Kid has NO IDEA

Hi Scott,

In 2008 I purchased a photo shop, and my parents redrew their mortgage so I could do this. It was initially $65,000, but then over a few years it built up to $120,000. I ran it successfully for a few years but, as digital media grew and prints became less popular, the business slowly went down the gurgler, and closed in 2016. Since then I have been chipping away at the debt and it is down to $61,000, but the strain on my relationship with my dad is not great. He gets so upset if he sees me or my partner spending money on pleasure because he thinks we should just focus on the debt. I do want the debt gone but I also don’t want to miss out on precious time to make memories with my kids. How do I get it paid quickly but still enjoy life?

Kelly

Hi Kelly

Oh god.

So this was a terrible idea to start off with, and now it’s a festering sore.

If I were in your shoes I’d want to get rid of the loan from your father as soon as humanly possible.

Can you refinance it with a traditional lender?

In your situation I’d be willing to pay a higher interest rate if it meant I could save the relationship with my father.

Take this as a lesson (one your dad has probably learned by now): if you can afford it, give money away to your family with no strings attached, but don’t ever lend to (or go guarantor for) people you love.

Scott.