Would You Loan A Collecting Bud 100K to Cover Credit Card Debt

Coinosaurus

Suppose one of your coin collecting buds has run up 100K in credit card debt. Vacations, electronic gizmos, new furniture, that kind of thing. And then they come and ask you for a loan to cover it. Should you make them sell their collection before helping them out?

MORGANHUNTER2

I say ask the guberment to bail them out- they will bail out all bad debtors- just ask AIG!

Tootawl

<< <i> Should you make them sell their collection before helping them out? >>


Yes.

derryb

Give him Henry Paulson's phone number

VirtualWon

Neither a borrower nor a lender be..........saga advice from a very reliable source (even if we often don't heed it)

If they have bought so much then why loan they have collateral. a loan to cover the coins should be enough and as they pay you back they get thier coins back that way noones out.

Raybo

If I had a 100K to lend them?
If their collection was worth at least a 100K?

Vague questions don't you think Coinosaurus?

What do I know anyway!


Ray

Placid

"Vacations, electronic gizmos, new furniture, that kind of thing."

The only thing there that would come close to something needed imho would be the furniture.
If people want to live beyond their means then cry when they cant pay I say too bad for you.

Bochiman

If they have over $100k collateral, are willing to pay me a % greater than I would get from investments, currently, but still lower than what a bank may charge them, and I had the ability to do so, then yes, I would.

Without the collateral (the coins or whatever that I felt would hold value...and it would have to be at least 25-50% over the value of the loan....all with supporting documents to protect both parties), I would not do so. He obviously has trouble with values and doesn't mind the debt. I would worry he would blow the loaned money and be further in debt and not able to pay me back.

bigmansam88

You could make a temporary trade: their coins for your money.

Then, they could have the coins after paying you back.

BigE

How much is their collection worth ACV? How will loaning them this kind of money cramp your lifestyle, not enough info in my opinion---------------------------------------BigE

Broadstruck

$100K is a very large sum to have to write off as a charitable contribution.

The collection would have to given as collateral and would have to exceed the level of the loan on a wholesale to dealer level.

This just doesn't sound like it would have a decent outcome no matter how it was spun

cinman14

Only loan a friend money if your tired of being their friend...

Money borrowed that is not returned is the greatest gift they could give...

BigE

Everyone seems to become "like family" when it comes to loans, especially if it has come out that one is vested in PM's or rare coins in past conversations, and especially these days---------------------BigE

stman

<< <i>100K in credit card debt. Vacations, electronic gizmos, new furniture >>



Not only NO, but L no. One thing I've learned that's not worth it...... doing business with friends or relatives, and loaning money to the same.

BigE

Loan them 5K as long as it's OK for your kid to pee in their new swimming pool-------------------------BigE

Cladiator

<< <i>Would You Loan A Collecting Bud 100K to Cover Credit Card Debt >>

Um...no. I'm not in the business of giving out money to people that make stupid decisions. I'm not the federal government.

CaptainRon

The first reactions would be to say: who are you talking to, who me, me (Then a burst of laughter) loan you a hundred thousand (Laughter would then resume)

After changing my pants, I would honestly ask to see his collection, to see if his valuation of the collection is remotely close to my estimations. If it is, I would tell them they need to find a richer friend to hang with. If it's not, then I would go looking for a smarter friend to hang with.

Bottom line if you ask me for a hundred thousand, you just lost yourself a friend.

Ron

LincolnCentMan

1) Banks are availible for loans. If a bank wont take a risk on my bud, I wont either. And if a bank will take a risk on my bud, there's no reason for me to.
2) I wouldnt be making him sell his collection. He placed himself in a possition to have a need to sell his collection.


-David

Lakesammman

I did, but with a coin as collateral. Don't know personally what the debt was from - none of my business.

We are still friends.

lasvegasteddy

me...100k...to lend


i'm so broke...most of my coins have been 1 or 2 month layaways

but...in ll honesty...if you had it...if he had 120k in collateral...i'm sure terms could be agreed

whose gunna bank roll my 1916 pr64r/b matty when it pops up?

i'll shine and toss all of my other matty's on the line

MrBear

I hope some day that I'd have $100k laying around that I could throw it around like that. It would depend on the friend, of course.

I just finished reading "Indecent Exposure" which is about the David Begelman scandal at Columbia Pictures in the late 70s. Basically the guy forged checks and embezzled about $65k from the studio over a 2-3 year period. To put this in perspective, he was probably making about 5x that much in a year. It appears that he did it because he had some sociopathic tendencies (e.g., didn't show any remorse until caught, kept insisting that 'what has been found' was all he'd done, then they'd find more, etc). The various major characters in the story all repeatedly said "If you needed $10k, $20k, whatever, *I* would have given it to you!" and adjusted for inflation, those amounts are around $100k today.

It really depends on the income brackets we're talking about.

291fifth

If he were one of the "right" people it would be the thing to do.

500Bay

If I were a billionaire, and if my friends collection was worth several million ... perhaps.

Other than that - no way.

blueifalcon

Sell the coins and get back with me when there is a more reasonable bailout. Don't believe I would like to take the risk on a failing business, unless I received the business and coins. But, then again, I don't gamble: Was that response political enough or what? 2drink;

ColonialCoinUnion

<< <i>Would You Loan A Collecting Bud 100K to Cover Credit Card Debt >>



If I had 100K sitting idle around here, I will still not even consider it.

I can imagine many possible outcomes for a lender in this scenario, and they range from unpleasant to extremely terrible.

jessewvu

hell no I wouldn't. They got into the mess without you, they can find their way out or they will be doing it again.

RyGuy

<< <i>"Vacations, electronic gizmos, new furniture, that kind of thing."

The only thing there that would come close to something needed imho would be the furniture.
If people want to live beyond their means then cry when they cant pay I say too bad for you. >>



I couldn't agree more!

Ryan

notwilight

They've demonstrated they can't manage money so let them mismanage some of yours...

goose3

<< <i>

<< <i>Would You Loan A Collecting Bud 100K to Cover Credit Card Debt >>



>>



would this friend be a smoker or non-smoker?

BBN

No. First of all if you loan them the money they learned nothing from their experience. Second of all the friendship will never be the same and will probably no longer be a friendship afterward. That kind of stuff ruins family relationships too. It would definitely kill the friendship as the dynamics of the friendship are changed. He no longer is your friend. Now he's just a guy that owes you money that will probably never pay it all back

Tampawolverine

No, let him file chapter 7 bankruptcy and let the chapter 7 trustee sell the coins at auction in exchange for allowing your "friend" to get a discharge on his unsecured debt. Maybe then he will learn the true value of his coins and still have his "fresh start" and you have zero risk/exposure.

RYK

I would not loan $100,000 to any collecting friend (except perhaps Longacre ).

TwoSides2aCoin

No, but I would give him a job and help him make some money. Hopefully he would learn that stupid is what stupid does.

abitofthisabitofthat

Heck no. I would also be affronted if someone asked me that.

"Hey, Buddy. I have been living above my means for years. Rather than tackle this problem by myself, I though that I would impose on our friendship and hit you up for a very large loan. How bout $100K? I promise to try not to rack up another 100G on my credit cards, and I may even be able to pay you back some day."

I can't even imagine the brass ones that it would take to initiate that conversation.

YaHa

NO!! 100k in credit card debt is reckless just like a person that knows someone that has aids and doesn't use protection. We can butt heads on here or any other place in life about opinions but what your Bud should do is say f it and go bankrupt just like all of these other sorry azz people that want what they can't afford in the 21th century.

Stupid, Stupid, Stupid. Don't get me started today guys about people wasting money. Everyday reckless people spend money they don't have costs me money. I don't take chances, although I did sleep at a Holiday Inn last night.

fishcooker

I wouldn't make them sell their collection. They could choose to do so after I declined to make a loan, though. I'd never in a million years loan them $1000, much less $100,000.

This person has a vastly different system of values than I do. We're not compatible when it comes to business.

I am so thankful I declined to enter into business with a friend, due to the fact that I perceived different business values. About 2 years later his wife came over crying to my wife that the IRS was going to take everything they have. He had bought a new leather Expedition and a new house, while declining to pay $80,000 in taxes - he found out the easy way that those 1099's actually go to the IRS too.

messydesk

I was thinking I'd let him consign his collection to me, but then I'd never hear the end of "do you have any more money for me yet?" So the extent of what I'd do is buy stuff out of his collection at a price at which I know I could make money or that I really wanted for my collection.

doh

Do NOT loan them that kind of cash. You're asking for trouble.

LickThoseStamps

I don't loan money to friends or family. I make it a gift to show how much I appreciate them.

Give the money to your friend to prove how you value his friendship.

commoncents123

How about loaning me 100k to flip some coins with?

adamlaneus

I would not offer a loan.

The best I would offer to do is to buy some of this persons coins to try and help offset their debt. I would give them a fair price, perhaps even a little more if I am getting coins out of the deal that also save me time from looking around for them elsewhere. But it is also rather unlikely that I would cough up six figures for coins in one go.

So basically my answer is no, no and no. With a little bit of prey on the debtor mixed in.

Walmann

Considering the size of the debit and what the funds were spent on this person doesn't seem very interested in their own financial welfare.

If someone is not willing to help them self via constructive action then why should someone else be either willing or obligated to help them?

Their best course action is to own up to his or her's prior actions and met their own financial obligations from their own resources first. Don't perpetuate their self harming behavior any further, using yet another loan is not the solution.

oreville

Had it been coins only and not the furniture and gizmos, I might have considered loaning enough payments to cover the minimum monthly payment for up to five months. This way, enough coins could be sold by my friend in a measured way to cover at least a substantial part of my friend's debt.

Why does the whole credit card debt have to be paid at once?

Of course, I would ask for some coins as good faith collateral on my relatively small loan.

itsnotjustme

I would be incapable of it!

pcgs69

I'd refer them to www.prosper.com, maybe some other person would be willing.

lasvegasteddy

<<<www.prosper.com>>>

thanks for the tip...i'm such a $$$ mess...it might even help me out but i don't need 100k...just 7k in which my 9k in pcgs mattys are held in collateral...we'll see

lordmarcovan

Would I loan somebody more than my own personal net worth?



I think not.

WinPitcher

Depends, was I a multi millionaire? maybe.

Are we talking about me as in me? NO


I'd prolly fit more into the category as being the guy that needs the loan.


Steve

fcloud

Not a chance. If there collection was worth it maybe buy their collection.

Longacre

<< <i>I would not loan $100,000 to any collecting friend (except perhaps Longacre ). >>



Thanks.

Does Coinosaurus know my inlaws? No, probably not. They don't collect, and they owe $700,000 in debts.

TwoSides2aCoin

There is a coin that says : "Mind your business"

There's absent-mindedness in this scenario.
Their's is absent-mindedness in this scenario
They're absent minded in this scenario.

Does anyone understand me ? I feel like a lone dog in the wilderness here.
Do not assume another's debt. It is bad business and will ruin a friendship.
Addictions come in many shapes and sizes. Friends need help, not money.