Family money pressures
Lesson 8 of 14 in our free Relationships, Family & Money guide: a 5-minute money game with the key points below.
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Questions you'll answer
Your parent asks you to take out a credit card in your name for them to use. What's the best response?
Quick facts
- Helping a sibling write a budget → Fine: costs time, not money. Costs you time, not money. Love that.
- Sending £30 a month home from your wages (£360 a year) → Plan it: a regular cost in your budget. Common and caring. Build it into your budget as a regular cost, like a bill, so it's never a surprise.
- Lending a mate £200 until payday → Think hard: only lend what you could afford not to get back. Most mates pay back, but not all. Only lend what you could afford not to get back, and agree when it's due.
- Being a guarantor on a relative's tenancy → Big commitment: you'd owe all of it if they can't pay. If they can't pay, the landlord can come after you for all the rent, with no cap you choose.
- Taking a loan in your name for a relative → Big commitment: you'd owe all of it if they can't pay. It's your debt and your credit file, whatever they promise.
- Fact: “A guarantor can be chased for the full debt if the borrower doesn't pay.” — That's literally the job. Guarantors are liable, and missed payments can hit their credit file.
- Myth: “Saying no to family money requests means you don't care.” — You can't help anyone from an empty bank account. A kind no protects you both.
- Myth: “When a family member dies, their children automatically inherit their debts.” — Debts are paid from the person's estate. Family usually don't have to pay from their own money unless the debt was joint or they were a guarantor.