Been asked to get a loan against my flat. Advice needed.

limitation

tom_bombadil wrote: »

Hi guys,

I could use some advice please.

One of my friends has asked me to borrow against my flat because he owes money to payday loan companies that he cant pay. He has tried to get a loan and isnt able to get one because of his poor credit rating.

What I'd like to know is:
I own my own flat outright but I am not currently working. Am I likely to get a loan?
Is there anyway out of this without him going bankrupt if I dont help him?

Let me know if more information is needed. I have only talked to him briefly about this and will be talking at length about it tomorow.

Any help/suggestions would be appreciated.

Thanks

''He has tried to get a loan and isnt able to get one because of his poor credit rating''

I personally think its quite admirable how you're willing to put your own !!!! on the line for your friend, But his debt's aren't your problem i'm afraid ! Now ask your self why he has a bad credit rating...Because he has an inability to pay his credit agreements on time ! So what makes you think he's going to pay you on time ? Only this time if he misses a payment it isn't his !!!! in the firing line, It's yours ! And then your credit rating will suffer because of his actions ! By extending him yet more credit you aren't setting a good example, I know you mean well, But why should he be bailed out by someone else ? He took out those credit agreements, And didn't pay, Its his fault he's in a financial mess !

If he has debt problems, Then he needs to seek professional advice !

poppasmurf_bewdley

tom_bombadil wrote: »

I'm being bloody stupid arent? Thanks for the wake up call. Normally I'd ask dad for advice about this stuff but I didnt want to because I know he'd go spare.

I have lent him money before and I've always got it back. I know him fairly well and I know he is trust worthy but I also know how bad he is with money. He has to learn his lesson. We tried telling him but he didnt listen.

He needs to find a way out of this on his own. I havent got much in the way of debt and what I have got will be paid off in a few months. Thanks for the advice.

Don't you realise that that is how scammers work!

They borrow a little and pay it back, and build up your confidence. Then they try for the big one, having primed you with their small repayments in the past.

He's probably been setting this up for some time, hoping you'll fall for the big one. To ask you to take out a loan secured on your property shows he's really thought this through.

DON'T DO IT!

pauletruth

Your a nice person. however why would you be willing to pay his debts for him its totally daft. if he laid the help or i am going bankrupt on you then he is using you. if he was in that much debt that he can't afford then it maybe a wise idea for him to become bankrupt. however thats his problem. don't even think about getting involved in his mess. as you say think what your dad would say.
if your friend gets upset then he really is not that much of a mate.

27col

Your friend seems to belong to the "I've got a problem, and I'm going to solve it by making it someone else's problem" school of thinking. Stay well clear if you don't want this to happen.

Vikipollard

It shows you're a good mate to even have thought about doing this, but as others have said, don't do it.

The best way you can help him is to support him in getting professional advice and a realistic payment plan in place.

Sadly, he'll never learn until he has to face up to HIS situation.

ILW

If you are prepared to lose your flat then consider it.
If not tell your friend to sort himself out.
It really is that simple.

suburbanwifey

Don't do it, your flat that you own is your security for the future, you could lose it because of your proposed kindness. He is not being kind, else he wouldn't ask you. You shouldn't do this for family, never mind a friend who could disappear tomorrow. DON'T DO IT

laurel7172

What they said.

All of them. With a bucketful of DON'T DO IT on top.

Millie_Millsters

tom_bombadil wrote: »

I'm being bloody stupid arent? Thanks for the wake up call. Normally I'd ask dad for advice about this stuff but I didnt want to because I know he'd go spare.

Sensible Dad you've got there. :T

suburbanwifey

tom_bombadil wrote: »

He asking because he's desperate and he doesnt see any other option other than defaulting and going bankrupt

I've tried telling him to budget but he cant because he's borrowed more than he can pay in one month so has to borrow more. then end result is all his money goes on interest.

Him having no other options is not your fault or your problem. He's your friend, not your wife or child! Friends come and go, and friends disappear when they owe you money usually. Never a lender or a borrower be with friends. I paid my mortgage off a week ago, you are also in the enviable position of owning your own home - actually owning it. Don't let this guy manipulate you, as that is what it is.