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

suburbanwifey

Let him go bankrupt! His fault for running up debt and not paying it back. What goes around, comes around.

bouncydog1

Point him in the direction of the charities that help people sort out their debts.

You presumably have ended up with your financial security because you have been careful with your money - your friend is an idiot!

Be the best friend you can be by listening but set a time limit, don't be persuaded by his sob stories, and if all else fails walk away.

jc808

In summary:

NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO

tom_bombadil

suburbanwifey wrote: »

Never a lender or a borrower be with friends.

Good advice. Two of my friends dont speak anymore because of arguements over money. My dad has had problems lending money in the past and now wont money anymore or tools for that matter. I've been taught to budget for things and save money and dont borrow unless you have to. All your doing is buying time and in long run have less money.

I realise that its not my problem but I dont like to see my mates in trouble. He knows that he shouldnt ask and I've told him that he needs to figure out a way out of this on his own. So I've offered support and told him to get advice from charities like payplan.

Apparently he's got in difficulty before and needed bailing out (I didnt know this before I posted). He paid back that loan but he's not learnt his lesson it seems. Its up to him he either learns his lesson or he'll end up going bankrupt.

Anyway I thank you all for your advice. I'm going to go explore these forums. Theres alot of useful information on here.

endora

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.

Setting aside the issue of trust, etc. securing unsecured debt by re-mortgaging or borrowing against a property is the worst possible course of action! Even if it was for yourself!

Payday loans are not a priority and there's no need to go bankrupt either, he can set up a repayment plan either himself or through a charity like CCCS. If he already has a bad credit record, a few more defaults from PDLs are not going to make any difference.

want-it-all

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

You sound like a good friend for even considering it, but please, please say no. Hopefully it'd be unlikely, but the bottom line worst case scenario could see you losing your own property which presumably you've put a lot of time, effort, work and money into purchasing.

And friends come and go...

Heaven forbid, what if he passed away, or something equally drastic?

tom_bombadil

want-it-all wrote: »

Heaven forbid, what if he passed away, or something equally drastic?

Yeah that thought occured to me as well. These loans from what I can tell are usually 5 or more years and thats a long time. I've come to my senses and will not be borrowing money but will pass on the advice on here.

lolavix

Good to see you have decided not to - I have learnt the hard way in the past and it has cost me a lot of money - I would never lend a friend money again, it just doesn't work!