Should I take on my friend's credit card debt?

TBagpuss

Be very cautious.

Why is the friend in debt and with such a poor credit rating?
Can you afford to lose the money?

There are some situations where it might be worth considering - for instance, if the friend is generally good with money but had a 'perfect storm' of issues (divorce, illness, job loss) coming at the same time which has put them in this position.

Be prepared to ask awkward questions. How was the debt built up? Has the friend been paying it back - can then show that they already have a track record of making regular payments? Is the debt still increasing?

If they can show that the debt was built up in circusmtnaces which have now changed, because they have got a better handle on managing their money, or because the emergencies which led to the debt building up have gone, *and* they can show that they are no longer building up new debt and have a track record of making regular payments then I might consider it, IF they were a very close friend and IF I could afford to lose the money of things went wrong, but I would need to know them very well indeed and they would need to be willing to be open with me about their financial situation so I could make an informed decision.

For me, the amount involved would make a big difference. Can you afford to lose £3,000? Can you afford to have £3,000 that is unavailable to you?

I would not borrow money to lend to a friend. If I had it in savings and felt confident that they would repay I might consider it, for certain, specific friends.

TBagpuss

Just realised that the original question refers to the questioner's credit rating - so asking whether to borrow money to lend to a friend. Which means my answer is definitely don't do it.

It is one thing to risk my own money, another to risk my credit rating!

jillmarie

NO NO NO . Watch Judge Judy a few times and see just how badly it can turn out.

Woodstok

First two questions to ask yourself are 'can I afford to be without this money for at least the near future?' and 'Can I afford to lose the money completely?'.

If the answer to either of those is No, walk away. If the answer to both is Yes, feel free to lend the money but be sensible. Have a solicitor involved and draw up a contract detailing a loan of £3k, the repayments etc. That way everything is clear at the start.

tgroom57

No.
If it was a question of lending say £40 til payday to avoid overdraft fees then I'd be ok with that. Find a small way you can assist.

thegentleway

Only if you are willing and able to write it off.


I lent my friend £3,100 in total. He owes money to a lot of people, banks, and credit cards. He has paid back most of it but a lot slower than was originally agreed.


What I did for another friend (I trusted him less) is split the debt between friends, i.e. 3 of us lent him £750. He's paid us all back. He doesn't have debts, credit cards, etc...


I would want my friends to help me out if I was in need so I help them if I can..


Don't lend anybody money you are not happy to never see again.

warehouse

Due to being on these boards for quite some time now I've seen this countless times. The answer to the original question is easy...

NO

FireWyrm

NO

You will lose both the money and the friend. This never works. Ever. Not in a million years.

Cimscate

You have to be prepared for the impact it could have on your friendship, I lent money some years ago to my closest friend when her business was in trouble. Took years to pay it back, the business went bankrupt anyway and they ended up on benefits.
Didn't seem to stop them doing quite a lot of other things like buying a caravan in France for cheap holidays etc (everything was cheap so didn't count!) I did get my money back eventually but it definitely impacted on our friendship from my point of view anyway. We are still friends but I never felt quite the same about the relationship as I felt I'd been taken advantage of - especially as she was quite aggrieved when I wanted interest. I ended up out of pocket but that wasn't the point, I didn't feel she had behaved as a friend should.

janiebquick

Absolutely NOT. This is the ultimate No NO.