Fast borrowing/payback options?

JonathanSJW

I'm in a tough situation & would greatly appreciate some advice from the experts.

I've posted this in the 'credit card' forum as after reading through the 'credit cards & loans' section on the main website it seems like credit cards are going to be my best option as the debt is going to be paid off in a short period time.

My dad is in serious debt, just under £20,000, (I'd rather not go into the details of this situation) & I would like to help him & borrow the money/lend it to him if I can. The money + any interest incurred will be paid back in 2-3 months at the latest as he is selling our house.

I am 22 years old & in full-time employment, earning £22,000 a year. I still live with my parents & have no financial commitments. I've never had a credit card before & have a clean credit history.

Am I realistically going to be able to obtain anywhere near £20,000 in credit on a card or multiple cards? If so how many cards will I need to/be able to take out? If not, am I more likely to obtain a loan?

I have a younger sister who is also in full-time employment who would probably be able to get some credit but she doesn't know the extent of the family's problems & I'd rather keep it that way if at all possible.

Thanks for taking the time to read this, if anyone can offer any advice I'd be very very grateful.

opinions4u

I doubt you'd get that amount but you never know.

I think the first thing to do would be to talk it through carefully with Dad.

1) Would he accept your help? It would possibly be a major blow to his pride.
2) Do you really want to push your life back several years by saddling yourself with his debts?
3) Has he spoken to debt charities, CAB etc to investigate other options? If not, make sure this is done before you borrow a penny.

My own view is that taking on his debts would be a bad idea for numerous practical and psychological reasons.

stephane_2

Sorry to bring some bad news but unfortunately due to the fact of your lack of credit history you'll find it very hard to get a credit card from a mainstream lender, you may get a card from a sub-prime lender but your limit will be in the hundreds not thousands, even if you manage to get a card from main lender it is also likely to be the same kind of limit. As for a loan am afraid no one will lend you 100% of your income. The best place to start would be your own bank, they might be willing to lend you a few thousands but I doubt it very much....

stephane_2

To be honest I think the best option for him would be to contact all is creditors and explain situation, if he is serious about selling his house and repay debts then am sure he could come to some sort of arrangement with his creditors....2 to 3 months is not a long time and they won't have time to do much about it.
I would really avoid at all cost to put yourself into debt for his own mess...

JonathanSJW

opinions4u wrote: »

I doubt you'd get that amount but you never know.

I think the first thing to do would be to talk it through carefully with Dad.

1) Would he accept your help? It would possibly be a major blow to his pride.
2) Do you really want to push your life back several years by saddling yourself with his debts?
3) Has he spoken to debt charities, CAB etc to investigate other options? If not, make sure this is done before you borrow a penny.

Hi, thank you very much for replying.

1. He is a proud man but I think losing everything he's worked so hard his whole life for would dent his pride more than accepting a very short-term loan from his son, the situation has gone on for quite some time now & it's escalated beyond a matter of pride. He's given his family everything & sacrificed so much for us all so I only see it fair to do all I possibly can in return in his time of need.

2. As i said, I'd gladly push my life back a few years than see my parents' lives completely ruined. If the loans are going to be paid back fairly quickly will I still be greatly effected by taking out this amount of credit?

3. Yes all of those avenues have been explored & this really is looking like the only option.

stephane_2

I think you need to get back on earth, as explained before you'll never get that amount of money.
Are any other family members with an establish credit history could help? But I seriously think that what I previously suggested is the best option, it is sad but at least he has some assets and will be able to repay his debt within a short period....

JonathanSJW

stephane wrote: »

Sorry to bring some bad news but unfortunately due to the fact of your lack of credit history you'll find it very hard to get a credit card from a mainstream lender, you may get a card from a sub-prime lender but your limit will be in the hundreds not thousands, even if you manage to get a card from main lender it is also likely to be the same kind of limit. As for a loan am afraid no one will lend you 100% of your income. The best place to start would be your own bank, they might be willing to lend you a few thousands but I doubt it very much....

Hi, thank you also for the response!

I feared this may have been the case given my lack of history. I know it'll be frowned upon but a friend of mine lied on an online card application when he was 17, received a £5,000 limit & has been using the card for 6 years. As a last resort is this a viable option?

Re: loans, what sort of % of income are banks likely to lend?

stephane_2

Most lenders before considering a loan will want to see that person having run several credit card account for a length of time, I know it is a vicious circle.....

Hax

I wouldn't suggest lying on your application - this could be picked up by National Hunter and result in you getting a CIFAS marker on your file.

Are your father's debts secured or unsecured? If unsecured, and you are 100% sure that he will be able to sell the house and get the money within the time-frame you suggest, then I see no harm in asking creditors for some leniency with payments until the sale goes through - or maybe you could help maintain the minimum payments until that point?

If unsecured and there is any doubt over the time-frame of the house sale, then I would suggest looking at a DMP.

I can't see you being able to borrow anywhere near the £20,000 you need - mainly because you have no history of how you have managed previous credit accounts.

Hope you manage to find a solution - good luck!

redpete

JonathanSJW wrote: »

I know it'll be frowned upon but a friend of mine lied on an online card application when he was 17, received a £5,000 limit & has been using the card for 6 years. As a last resort is this a viable option?

The sort of lie that might have worked 6 years ago might well not work now that lenders are much more careful about who they throw money at.

p00hsticks

JonathanSJW wrote: »

The money + any interest incurred will be paid back in 2-3 months at the latest as he is selling our house.

At what stage is the house sale - does he have a buyer ? Have contracts been exchanged ? If not, then in the current climate I think you are being optimistic in looking at a timeframe of 2-3 months to pay it back.

And are you confident that there is enough equity in the house to pay back the money once the housr is sold (often when people are in debt the first and cheapest way of raising money is to remortgage the house) ?