Need some advice for a friend

scot7a1

Hi,

A friend of mine has come to me with a problem, she has 2-3 "payday" loan and has deferred them etc meaning the interest is sky rocketing, she currently needs something like £2.5k to pay them back.

She owes nothing else, but has a poor history and her credit score according do Credit Expert/Experian is something like Poor/Very poor.

She has looked at banks for loans, but hasn't been accepted for a loan. The only company that has so far given her the time of day is requiring a guarantor and the APR is 50%+


What is the best option do you think? Making an appt with her bank about a loan of sorts, or CAB, or?


Thanks

Emmzi

she won't get a loan.

open a basic account with a new bank to get wages paid into, default on the loans, set up payment plans with help of a debt management charity.

scot7a1

Emmzi wrote: »

she won't get a loan.

open a basic account with a new bank to get wages paid into, default on the loans, set up payment plans with help of a debt management charity.

No I suspected she wouldn't be able to.

So you think the best option would be to go via that route rather than pay through the nose with a guarantor loan?

Emmzi

the guarantor may as well just give her the money. they'll end up paying the loan anyway. That is why the lender is insisting on it.

if you are going to be guarantor please read the "lending money to family and friends thread" above. she's already proved herself incapable. No true friend would ask you to do this. I think we've heard of about 2 people honouring agreements in the last year...

scot7a1

Emmzi wrote: »

the guarantor may as well just give her the money. they'll end up paying the loan anyway. That is why the lender is insisting on it.

if you are going to be guarantor please read the "lending money to family and friends thread" above. she's already proved herself incapable. No true friend would ask you to do this. I think we've heard of about 2 people honouring agreements in the last year...

I'm not really considering it, more out of principle at the interest rate. But I don't want her to go and get someone to be guarantor when there is a better solution available.

DCFC79

scot7a1 wrote: »

I'm not really considering it, more out of principle at the interest rate. But I don't want her to go and get someone to be guarantor when there is a better solution available.

The better solution is to cut back on any spendng and i mean really cut back, move the money and wages to a basic bank account as previoulsy suggested.

A guarantor is only a good idea if there is complete trust between the 2 in terms of the 1 with the debts keeps up with the payments and doesn't miss 1.

Apples2

She will not get a loan as her poor/very poor history shows everyone she WILL NOT repay it even if anyone was daft enough to lend.

To make things worse she has been grabbing Payday Loans, which she isn't repaying (refer to point 1 above).

Heaven forbid anyone agrees to be her guarantor, she will NOT repay it leaving it all to the guarantor to repay.
She will then be debt free and run straight back to the Payday Loan company and start all over again.

She spends more than she earns, until this changes keep a good distance away and offer nothing but moral support and try to help her curb her spending, it is out of control.

chalkie99

scot7a1 wrote: »

A friend of mine has come to me with a problem,

Lock your door, pull the curtains and stop answering your 'phone.

She has told you her only option is a guarantor - it's just the opening gambit in earholing you into being that guarantor.

27col

She has two options. One is to get a guarantor. the other is to get someone to give her the money. No, hang on! They are both the same thing.

debtcutter

Emmzi wrote: »

the guarantor may as well just give her the money. they'll end up paying the loan anyway. That is why the lender is insisting on it.

if you are going to be guarantor please read the "lending money to family and friends thread" above. she's already proved herself incapable. No true friend would ask you to do this. I think we've heard of about 2 people honouring agreements in the last year...

I repaid a guarantor loan OK.

I can understand advising people against it, for obvious reasons, but not everyone that asks a friend to be a guarantor is going to run away with the cash/lose their job.

In this case though, it does sound a bit like she just needs to stop spending all her money every month.

How much is she being expected to pay back each month to repay the payday loans? How short is she from making those payments?

Emmzi

I'll make that 3 then..!