A delicate situation ...

27col

Quote"If by some remote chance they do default on payment"
It is not a remote chance, it is almost a dead certainty that they will default. They have the past poor credit history to prove that they will default. Their intention is to solve their financial problem by making it your problem.
Keep well clear if you know what is good for you. So often 20 year friendships suddenly mean nothing when money is involved. You have only to read the many posts on this forum to know that.

garynuman

Plenty of advice already given to let them down gently.

But I hate to say that if they're in debt due to overspending, they may well just spend your hard earned money on the latest 60" TV or Playstation, XBOX, etc.

They need to have their LBM!!

Gaz

barbarawright

Poor credit history = history of not paying debts. Has the friend explained why he/she has a poor credit history?

doinwell

Apples2> I have been trying to read the link you posted. There's quite a lot to read, so will keep going until I get to the end of it. There are some interesting things there.

barbarawright> My friend was married for a number of years and 1 or 2 financial issues arose from that. They have now separated (but not divorced) and my friend ended up paying financially.

Thank you all once again. Your guidance/advice is much appreciated.

Kind regards, doinwell

bargainbetty

I have a friend who I lent money to over the course of 20 years. She hasn't repaid a penny. Even when her OH got an insurance payout, and she happily told me she had paid everyone back and was 'free and clear', I sat there looking at my empty hand. I will never lend her a penny again.

Your friend has got into this situation for a reason. Why does he need £5k? Is it a reasonable sum given his needs? Could he find a more cost-effective alternative to whatever it is he plans doing? Offer to help him find new, cheaper options.

Can he save money, take a second job, sell junk on eBay, do boot fairs etc to raise the funds he needs? Why is he asking you before ehausting all these options? Offer to help him switch suppliers, reduce his expenditure, share cheap time with him, help him clear out stuff etc...

If you take a loan in your own name, you would need to produce a legally binding agreement to ensure repayments would be made. Even then, he could claim poverty and reduce them to £1 per month, and you wouldn't be able to stop him doing it. You will be liable for the full repayment. If you co-sign as guarantor, then you are also liable for the full debt.

Say no. You are very likely to regret it and lose a friend if you don't.

tell_it_how_it_is

I lent a family member £500 due to a difficult situation. Four years later, I'm still owed £250, having not seen a penny for over two years. It's fair to say though that I was half-expecting not to see it back anyway, so half of it is seen as some sort of a result.

Yet strangely the other day she was in a conversation with me and a few others and at one point said to me "... you're rich, aren't you?", which 1) is wrong, and 2) makes you realise that these people think that because you have lent it to them, you aren't going to miss it at all!

So in view of that, and the fact you may need to access some money yourself in the future, the answer has to mirror everyone else's - save yourself the hassle!!

Ilona

Do not listen to any sob stories, and don't feel guilty about saying no. A friend should never put you in this position, not a real friend anyway.
Ilona

Macca83_2

I can't believe the nerve of some people. If one of my friends came to me and asked if i would perhaps take out a loan on their behalf, id tell them to get to falkirk. Obviously replacing falkirk with a more suitable expletive.

Why would anyone think that is an appropriate thing to do

PoorCharleyBear

I agree with the others.
A close family member was short to get a mortgage...asked us for the difference which we had as a result of an inheritance. We had always had a fantastic relationship..(I am her godmother as well as relative)

Repayment was due in December, 8 months on we are still no closer to getting this back and we need it to buy our house. Strangely this formerly vey close family member never speaks to us/never calls/ avoids us and passes on messages through another family member.
I wish I had read this forum before we had loaned but never again...

So OP just DONT DO IT.