Need help with loan company

nannoo1955

My nephew and girlfriend want to get a loan to consolidate all their loans. They have a bad credit record, but want to get straight. I am happy to guarantee it if necessary. Tesco just said no online. Can anyone help with suggesting a bank who might be sympathetic, or a company who would loan them the money but not at an horrendous interest rate? Many thanks.

sharp82

Do not guarantee it. Ever

Get a loan out in your own name, and transfer them the money.... be prepared to end up paying it all back though

nomoneytoday

As above, it will be cheaper for you, assuming you're with a decent credit record, to obtain a loan in your own name and give them the money.

Then if the repayments are not forthcoming there won't be charges on top of a higher APR..

lynz68

Before you commit to anything have a look on this page there are numerous stories of people who have borrowed money for friends and family and have ended up not getting the money back and having to foot the bill themselves or not being able to afford the repayments and ended up in financial difficulty themselves.


Unless you yourself can afford to continue payments if they fail to do so do not do it. They have poor credit for a reason and unless they learn to live within there means they will just keep making the same mistakes.

The best thing you could for them is point them in the direction of the debt free wannabe page.

27col

nannoo1955 wrote: »

My nephew and girlfriend want to get a loan to consolidate all their loans. They have a bad credit record, but want to get straight. I am happy to guarantee it if necessary. Tesco just said no online. Can anyone help with suggesting a bank who might be sympathetic, or a company who would loan them the money but not at an horrendous interest rate? Many thanks.

A bank.
Sympathetic.
I think not.
Probably doing them a favour in refusing.
If you are prepared to go guarantor, then borrow the money yourself as already suggested. Cheaper for all concerned.
If you are confident enough to go guarantor, then lending the money directly will be no more of a risk.
If you are not confident then steer well clear.

Pixie5740

your nephew and his girlfriend have poor credit history and a lot of outstanding debt already so they will find it difficult to get yet another loan especially at a half decent rate.

Borrowing got them into this mess, further borrowing won't get them out of it. It's great that they want to tackle their debt but a consolidation loan isn't the way forward. Unless they tackle the root cause of the debt (poor budgeting for example) then by consolidating they'll just end up back at square 1 with twice as much debt.

If they're serious about clearing their debt then a better way forward would be for them to put together an honest and accurate statement of affairs to work out where their money goes.

http://www.stoozing.com/calculator/soa.php

They could also use the Snowball calculator to work out which debts to tackle first.


Tell them to have a look at the Debt Free Wannabe board for tips on how to cut expenditure and to see that they're not alone, others are in the same boat as them.

http://www.whatsthecost.com/snowball.aspx

Whatever you do, don't go guaranteeing any loans for them unless you want your credit to go down the pooper too.

nannoo1955

It has taken over four hours, but we have got them a loan through Santander - but at 12% APR. I thought they could go with this, then approach Santander in six months time and see if they could renegotiate.

Foxy-Stoat_3

1. Get a loan in your name only.
2. Tell them to default on all their cards/loans for at least 3 months
3. Clear all the debts for them and cancel the cards/loans

This way they will not be able to take out more credit for a few years landing them in the same or even deeper debts, which will give them time to pay you back.

Goooooooood lucks

Foxy-Stoat_3

nannoo1955 wrote: »

It has taken over four hours, but we have got them a loan through Santander - but at 12% APR. I thought they could go with this, then approach Santander in six months time and see if they could renegotiate.

Why would the lender re-negotiate in 6 months time?

Or are you thinking they can take out another loan at a cheaper rate to clear the Santander loan?

Pixie5740

nannoo1955 wrote: »

It has taken over four hours, but we have got them a loan through Santander - but at 12% APR. I thought they could go with this, then approach Santander in six months time and see if they could renegotiate.

I wouldn't call that a solution. Constantly refinancing debt is what I'd call a financial death spiral.

nannoo1955

The choice was the loan with Santander, or with me!! If they prove to be good with their repayments on the loan, it would be good to chat with Santander in a few months and transfer all their banking to them to get their advantages, e.g. cashback on utilities etc.