Risk of paying off a debt for a relative during house purchase?

Penelope_Penguin

I'm wondering if it's actually bailiffs coming to seize goods, hence the urgency.

hazyjo

High earning, yet there are debt collectors at the door?! Doesn't add up.


Mind you, I used to know someone who earned £80k+ (more in his previous job) with 5 figure bonuses twice a year - but he had debt collectors at the door, used dodgy short term loan companies, couldn't afford coats for his two children (who I would class as semi-feral) and let the house fall apart - all because he'd rather snort coke up his nose and spend the rest down the pub.


As above - don't do it. People on high incomes do not have debt collectors at the door unless they are in serious financial trouble.


Jx

foxy-stoat

If you insist on helping this person out and if he has a car that he owns outright with no finance thats worth £10,000 minimum retail then buy it off him for £4000, put on the receipt that he has the option to buy it back for the price he paid plus your expenses, tax/insurance if you have nowhere to store it off the road. If he cannot give you the cash back in 14 days then take it straight to webuyanycarforhalfthevalue and get your £4000 + £1000 for your trouble.

Thats what baliffs will do when he cant pay the £4000 when they come round.

thesaint

What will happen if he doesn't pay the 4k now?

trevormax

Don't do it. Getting money back off of a family member is a huge PITA.

A month ago I lent a few £hundred from my deposit savings to a sister on holiday because her employer messed up her wages. She made all the promises under the sun about how she would pay it back the day she got back because she'd speak to her employer. A month later and I am still chasing her up for the money, and that is a small amount. Now that she is back and there is no urgency, paying me back is not high up on her list of things to do.

It sounds like if you lend £4k, you will never see it again. You will not have enough money for your deposit and your house purchase will fall through, your partner will leave you because you messed everything up, your family pet will run off with the neighbours pets, you will stub your toe etc etc.

Please take the advice of pretty much everyone who has replied and tell your reletive that you are not ina position to help.

moneyistooshorttomention

thesaint wrote: »

What will happen if he doesn't pay the 4k now?

Well - I wouldnt advise OP to ask him that question. Because this would-be borrower would doubtless just put on "puppy dog eyes" and plead all sorts as to what would happen to them.

I must admit that it's often been my experience that people who come over as the most "hard done by"/"with puppy dog eyes" have turned out to be pretty "hard" types and much less honest than I am (ie they will tell all sorts of tall tales to get what they want).

marliepanda

It's not desperate, he just doesn't want his tele taking away.

Let them take it and he can get another one with his 4K wages...

thesaint

moneyistooshorttomention wrote: »

Well - I wouldnt advise OP to ask him that question.

It would be the very first question I would ask.

tlc678910

Don't do it. There is no-one that your relative owes money to that needs the money more in the next two weeks than you do.

If your relative were evicted even, at least you would be able to offer a camp bed, as your house won't have fallen through.

If you really want to help them, find out about their problem and help to find a solution (ask for advice on MSE re bailiffs, eviction etc when you know the circumstances.)

If your relative is a high earner able to pay you 4K in two weeks I'm guessing they might need 2K of funds available for their monthly commitments on top if they are to pay you back in full. They would need to get paid 6K (and earn according to google 72K). Are they on a monthly salary? Begs the question what did they do with the 6K they got a couple of weeks ago.

If the problem is not so run of the mill e.g. your relative is a builder and owes the builders merchants,I'm sure as others have suggested the person will wait if they are given the certainty that you have that they will be paid in two weeks.

If it's gambling or drugs you definately won't see your money again so don't even think about it no matter who they owe money to.

Further to the previous poster (a good idea but) if your relative has an expensive car get them to sell it to pay their debt off - no one should ask you to lend them that amount of money if they can raise it by simply selling their car.

I don't like to say it's not your problem because you care about your relative but help with the problem without your money being the solution.
Good luck.
Tlc

moneyistooshorttomention

Personally - I am wondering if the problem lies with "cultural expectations" - ie OP is from a culture where there is heavy pressure to "help relatives out" and therefore finding it difficult to resist this pressure?

DO listen to us all OP. This is one of the very few threads coming up on MSE where we've all been unanimous in agreeing you really shouldnt do this.