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Urgent advice needed - taking out a personal loan for a family member

2

Comments

  • Couldsavemore
    Couldsavemore Posts: 495 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    Say you did this..
    Made the first 3 repayments and then they gave you the £8000..
    You go to pay off the loan...
    I'm no expert but I'm thinking you'll be paying out more than £8000.

    I'd research debt management and perhaps offer to help them sort it out.

    As for yourself... get a cc and use / pay off in full each month.. this will help your credit score or get a small loan for skmething you want or hp on something.. these will help you improve your credit score...

    Personally I'd be saying sorry but I can't afford it
    # 36 1p challenge 2024 - £536.60

    #13 POYD by Christmas 24  £2875 / 8138
  • bobbymotors
    bobbymotors Posts: 746 Forumite
    Run, Forrest, Run.

    Are you insane OP?
  • NinaSwiss
    NinaSwiss Posts: 278 Forumite
    Part of the Furniture Combo Breaker
    One word: Run!!!
    Working towards:
    [STRIKE]*House Purchase (2015)[/STRIKE]     [STRIKE] *Top-up pension (2016)[/STRIKE] [STRIKE] *Clear CC (2016) [/STRIKE]
    *Mortgage     Overpayment (50% LTV by Jan 2020) *Clear student Loan(by Jan 2020)[STRIKE]*Save for a Car (2017)![/STRIKE]
    *Making the most of life!!!
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
    Agree with others, if you do decide to do this you will be stuck with an £8000 debt, as you wont get a bean back. Thats a true fact!!
  • Edi81
    Edi81 Posts: 1,511 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The fact that you are having to ask means that you have a doubt over this.

    There are so many cases on here of people who have done this and ended up lumbered with the debt.

    As others have said - RUN!
  • NinaSwiss
    NinaSwiss Posts: 278 Forumite
    Part of the Furniture Combo Breaker
    Also, I cant see a remortgage happening without a job in place.
    You can help by pointing this relative to free debt advisers (eg stepchange) who can advise him/her on options available. Or even the 'debt free wannabe' forum.

    Help out financially if you can but manage your expectations and only give what you can afford to loose.
    Working towards:
    [STRIKE]*House Purchase (2015)[/STRIKE]     [STRIKE] *Top-up pension (2016)[/STRIKE] [STRIKE] *Clear CC (2016) [/STRIKE]
    *Mortgage     Overpayment (50% LTV by Jan 2020) *Clear student Loan(by Jan 2020)[STRIKE]*Save for a Car (2017)![/STRIKE]
    *Making the most of life!!!
  • System
    System Posts: 178,390 Community Admin
    10,000 Posts Photogenic Name Dropper
    jonesMUFCforever wrote: »
    Anyone else think this thread is a wind up?

    Sadly not. It isn't a unique question to be asked and we've had plenty of people who have done this, the family member or friend hasn't repaid them and they've been asking how to get out of it or recover the money.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Fifth Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
    If they are expecting to repay you in Q2 why do they want you to take out a 7 year loan?
    Friands and family and money never ever mix, DO NOT DO IT !
  • BobQ
    BobQ Posts: 11,181 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    jonesMUFCforever wrote: »
    Anyone else think this thread is a wind up?

    Its very well written, not like most trolls.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
  • BobQ
    BobQ Posts: 11,181 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    edited 1 January 2019 at 11:12PM
    Richard if you had £8K yourself and were planning on placing a long shot bet (eg that Liverpool, Man City and Tottenham will get relegated from the Premership this year), you might consider this instead. But in the real world I would say no.

    In effect you are in much the same position as someone who is acting as a guarantor (ie promising to repay someone else's loan if they are unable to do so). Except in this case your relative cannot even get a loan in the first place. This should tell you something.

    Your relative seems unable to manage his own finances and has simply overreached himself and now wants others to pick up the bill. If you have spare cash and you are willing to lose it by all means loan him something that you can afford to lose.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
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