trying to clear stuff...advice plz

amy21_2

hi! will explain situation & any helpful advice would be appreciated...

a family member(i'll call him bob)came to me worried with debt they have as they think i'm 'sensible' with money , anyways I got all statements from bob on debts - was like :mad: at the amount of interest i found out he was paying. total debt amounts to around 10k, with average apr on cards etc being 25% :eek:(they r mainly storecards), i was trying to work out a better way of managing all of the stuff getting rid of it onto a loan or some on to 0% b/t credit cards, he's got poor credit history, so I was thinking of gettin loan or c/c in my name, have no issues with trust regarding him paying etc. just want some advice...not sure what my credit is like- took loan for car recently and have had c/c for yr which have been good with other than that think am ok. am in process of getting my report thing from experian.

moozie_2

Hi there and welcome

I am sorry to hear of your relative's difficulties. Only you know whether getting a loan out to pay their debts is a good idea. I personally wouldn't and not because of credit issues!

I don't think your relative needs a loan. I think he needs to realise where he's going wrong with money and try to change it. Buying him the easy way out will only lead to him thinking he's in the clear and building up those debts again. It certainly happened to me when I consolidated previously Not a method I'd suggest to anyone unless they had really seen the light.

Anyway, that's my humble opinion. Best of luck and keep us posted

lynzpower

Hi there amy & welcome!

Defiantley DO NOT get a loan on someone elses behalf, if they stop paying you for whatever reason then you are well and truly lumbered with it!!

Especially if they are storecards, someone is spending on luxuries beyond thier means, and with no incentive to change their behaviour, wont change thier spending habits. I know, i was that person! and there are plenty of others on here who know from bitter experience that consolidation loans do not reduce debt because of this!

briona

amy21 wrote:

hi! will explain situation & any helpful advice would be appreciated...

a family member(i'll call him bob)came to me worried with debt they have as they think i'm 'sensible' with money , anyways I got all statements from bob on debts - was like :mad: at the amount of interest i found out he was paying. total debt amounts to around 10k, with average apr on cards etc being 25% :eek:(they r mainly storecards), i was trying to work out a better way of managing all of the stuff getting rid of it onto a loan or some on to 0% b/t credit cards, he's got poor credit history, so I was thinking of gettin loan or c/c in my name, have no issues with trust regarding him paying etc. just want some advice...not sure what my credit is like- took loan for car recently and have had c/c for yr which have been good with other than that think am ok. am in process of getting my report thing from experian.

Hi Amy

I would think long and hard before getting credit in your name for anyone else [however well-intentioned and trustworthy they may be]. If they lost their job, for example, where would that leave you? Is your credit rating something you are happy to put on the line for anybody?

Could you post "Bob's" SOA [Statement of Affairs – all incomings, outgoings, debts and their APRs]? People would be able to give more considered advice if they had all the facts. If this isn't an option, could you do a mini-SOA [just the debts and their APRs]?

Briona

RVK2

I completely agree with the above posters...don't take out the loan, send him to DFW and he'll get loads of help here.