Loan Rejected - Advice needed

BoGoF

Jack_Maloney wrote: »

Well the car is only 3k, the other 7 will be put towards sorting my girlfriends debt out with 'full and final' payments.

:wall::wall:................don't do it.

Jack_Maloney

Why? Dont spout some rubbish about how you might break up as i know the risks and know exactly what im doing.

ceegee

Jack_Maloney wrote: »

Well the car is only 3k, the other 7 will be put towards sorting my girlfriends debt out with 'full and final' payments.

Ohhhh, this is dangerous. You want to borrow £7,000 to pay off your girlfriend's debt. This is a minefield.:eek:

Is she to pay you back? What happens if you split up?

Don't do it.

Read the sticky link "Lending money to friends and family" and see what can happen. If that doesn't put you off, then nothing will.

These sorts of arrangements can very quickly turn bad.

Why can she not pay off her own debt?

balmk

Please think really carefully about what you are doing - you are basically taking on your girlfriends debts.

If you take a loan out in your name and use it to pay her debts and you split up, she will be debt free, and you will be overloaded. Run a search on the forum for threads where people have lent famiy and friends money and lived to regret it.

She has a poor credit rating for a reason. If she is serious about sorting her finances out have her post an SOA on the Debt Free Wannabe board for some constructive advice.

BoGoF

Now now people.....stop spouting rubbish

ceegee

Jack_Maloney wrote: »

Why? Dont spout some rubbish about how you might break up as i know the risks and know exactly what im doing.

Rubbish duly spouted.

I'll shut up now then.

:silenced:

Tixy

If your gf is in a position where creditors may accept reduced full & final settlements - does that mean she is also in a position where her creditors are not charging any interest?

If so and you are considering borrowing money to pay - you need to be careful that the discounts on the settlements will be significantly greater than the interest you will pay.

That said - I'd also agree that doing this is a bad idea. Bad idea in general, and specifically because of your circumstances - and how relatively in debt this will put you compared to your income. It doesn't sound like you could afford to service the whole loan and all your houeshold outgoings if you needed to (not just due to if you break up, but also if she loses her income through redundancy, illness, pregnancy etc)

If you do it and its on the understanding she will repay you the £7k then I'd suggest drawing up a loan agreement with her first. If she stops paying but can afford to pay then having an agreement which you could use to obtain a CCJ could be worthwhile (although if she stops paying because she can't afford to pay then a CCJ would be worth very little).

chanz4

she will pay, not like some on the boards these days, but op you will struggle to get a loan

Jack_Maloney

***************

BoGoF

As far as I can see you were given the answer to your original question - you are going to struggle to get a £10k loan and they aren't interested in the fact your gf pays half the bills. If Tesco turn you down then you are stuck for a few months.

If your intentions are to help your gf become debtfree then can you not contribute the money she pays for bills etc to her existing debt?