can't get any loan what so ever?????

peatyt

Hi,

well the short story is....

I lent a very good friend of mine £8000 2 years ago, £4000 to come travelling for a few months £4000 to pay off some credit cards so he had no repayments whilst away.

we have now been home for 16 months and he has been in full time employment for 13 months

we had a agreement for him to get a loan asap when he had a job and could afford repayments however he has been rejected for any loan other then some asking 35% APR due to a problem with his credit history (student overdraft repayment plan)

he has a good job taking home £1400 +commission per month

so on finding this out he has asked his parents to get the loan and for him to pay the monthly payments
parents are 50ish have fully paid off house with no mortgage and his dad works full time (20k) both with no black marks against their history.
however they also been declined any loan (due to "no credit" history of late)

I know that borrowing money at the moment is hard but no loan for £5-8K seems very strange to me.

I really need this money back asap please help!
what are my/their options?:(

Cheers
peat

AnnaV

Get proof that he owes you the money if you haven't ... sounds a bit dodgy already!

Tixy

Lots of people struggling to borrow as much as £5k at the moment. So without knowing their financial details and backgrounds I would say its entirely plausible.
In fact if he has a chequered credit history I'd be more surprised if he could borrow £5k.

His parents - also quite likely that the cannot get a loan without anything recent on file - it also might just be that they don't want to be involved in their son's financial problems. They perhaps cannot afford to risk lending him £8k plus the loan interest they would have to pay that they might not get back.

I would suggest you ask him to start making monthly repayments to you, that way you start getting some of the money back - and any is better than none plus if you don't have any paperwork it might help establish proof that the debt from him to you exists.

[Deleted User]

until he can get a loan ask him to pay you £250 a month

Ive_A_Horse_Outside

woodbine wrote: »

until he can get a loan ask him to pay you £250 a month

+1

Not being able to get a loan could be plausible but then again he could be stalling...

Monthly payments (he'd have to pay a loan monthly so why not pay you monthly) will give you extra cash and establish a sort of "proof" that he owes you the money - incase things get messy down the line...

peatyt

cheers for all the replies, and so quick!

we have spoke about monthly payments and £250 was mentioned, as a basic + any extra with commission varying each month.
I'm not worried about him not paying as i no that he really wants it cleared,

The main problem that i have is that i need a lump sum now. as I've got to clear some credit card debt (£2800) that i have built up mostly over the last 2 months as I was waiting for this loan repayment from him.

he thinks he will be able to get a loan late 2011 early 2012 when the 6 years has past since the black spot on his history, is there any chance that he or his parents would be more likely to get a credit card with 0% for 12months ect ? just so i get a lump now?

he has i credit card now i know with only a small amount left to pay.

Tixy

I wouldn't count on him being able to get a loan even then after his default or CCJ has been removed. Its getting harder to get loans and who knows what state the lending market will be in in a year. Him no chance of a 0% card with his credit history. Parents - lack of credit history also likely to rule them out of 0% deaks.

Can you not get a 0% card to move that debt to? Then you could put his monthly payments towards paying it off so that hopefully the £2800 would be clear before your 0% period runs out?

Other than that I would suggest you talk to him about him starting to make repayments on the £8k you lent him and also agreeing to pay extra to cover the interest you will be incurring on this card.

diable

If you need a lump sum now I think you are screwed, mention to him your interest payments and just add it to his loan if he can't pay you back.