Deer Steve...

I am writing to you regarding financial advice. 

I was recently lent the princely sum of ten english pounds, with the terms of the loan set out quite clearly as "i'll pay you back at the next cash machine we get to" and with an interest rate of zero. To cut a long story short the next cash machine arrived and neither party remembered that any payment was due. It has now been nearly one week since the debt was acquired. What should i do?

Whilst i could easily pay back this loan at a future date i feel that it might benefit both parties if i default on this loan and allow my creditor to apply for some government assistance.

Regards

Anon

Anon

Firstly I think its only fair to advise you of the fact I am well into my overdraft. Financial advice is not my strong point, but I’ll give it a go.

Getting into the grips of contract law, its is imperative that you really pay attention to what the sentence actually means, which is not necessarily the same as you’ve interpreted it. The term stated “I’ll pay you back at the next cash machine we get to” clearly states a place, but not a time frame. I would suggest that both parties take the time to remember where that cash point was, and make an appointment to reconvene at that location to fulfil the obligations of the contract.

As for the net interest rate of zero, as I recall, when I lent you this money, it was arranged on a similar basis to a fixed term mortgage, whereby the interest rate remains constant for a fixed period of time (in this case 3 months) following which the lender (me) has the right to change the interest rate in a way that he/she (I) feel fit.

Defaulting on this loan is not an option, and it must be paid back in full. I am however willing to discuss the clauses, and re-arrange the contract. In particular the location is no longer as important as I thought it was earlier this month.

I hope this helps you out Mark. The government weren’t interested in a bailout, although on my way out the local MP did ask if I had any receipts on me that they could take off my hands. I gave them the receipt for cleaning my moat.

S

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