Consolidate for somebody else?

Khujiro

Hi. Long story short I was once very bad with money but now I'm very good. I plunged myself into more and more debt with credit cards but have consistently spent no money with them for aroun 17 months and have made every payment in that time too (as well as nearly eradicating my car loan).



The issue I have is that my credit rating is just below average and due to my earnings and the fact I now have a daughter, I can't get 0% cards to replace the ones I have (and the terms have started to run out meaning mega interest!). My brother has kindly offered to take out a debt consolidation loan to help keep my debts at reasonable payments and to give me a debt free date (5 years!).


My question is, is this possible? Can my brother use a debt consolidation loan to take the debts from credit cards in my name? I'm absolutely desperate for this to work so please if you can help, please do! Thanks everyone.

jonesMUFCforever

IMO he would be 100% bonkers to take on your debts.
Once you have them paid off what incentive will you have to keep paying him back?
Money lending between friends and relatives never ends sweetly.

Willing2Learn

Khujiro wrote: »

Hi. Long story short I was once very bad with money but now I'm very good. I plunged myself into more and more debt with credit cards but have consistently spent no money with them for aroun 17 months and have made every payment in that time too (as well as nearly eradicating my car loan).



The issue I have is that my credit rating is just below average and due to my earnings and the fact I now have a daughter, I can't get 0% cards to replace the ones I have (and the terms have started to run out meaning mega interest!). My brother has kindly offered to take out a debt consolidation loan to help keep my debts at reasonable payments and to give me a debt free date (5 years!).


My question is, is this possible? Can my brother use a debt consolidation loan to take the debts from credit cards in my name? I'm absolutely desperate for this to work so please if you can help, please do! Thanks everyone.

I would urge you to think very carefully about the choice you may be about to make. We often find that people who take out consolidation loans tend to get themselves into further debt as they have not got a realistic and workable monthly budget.

For that reason, I suggest you post up your SOA (Statement of Affairs) so that we can have a good look at your financial circumstances. We will be able to see your income, expenses, assets and debts, so that we can give you targeted advice and support.

Edit: And welcome to the forum Khujiro

Khujiro

Why would I need to pay him back? He would be taking out the loan and I would be meeting the payments every month.

[Deleted User]

He is of course able to do it if he wants and is able to get the finance, but he is taking a huge risk and also impacting any of his own credit requirements that he may gave.

Khujiro

Essentially at the moment my incomings are £2455, my outgoings for bills is around £1100, Shopping £400, other expenses sit around £200 and I've been paying £400 a month on debt consistently for nearly a year and living from what's left. I would reduce this to £269 a month with the loan which would leave me with more money to put into my emergency fund which is currently at £400. I also occasionally get decent overtime which isn't factored into this.


I have actually got very good with money and have closed multiple credit cards along the way and I've listened to a few audiobooks, podcasts and read on how to manage my money which is something I do frequently. I'm only asking whether this is technically possible?

Willing2Learn

Of course, it is possible. Just not recommended. Please post your full SOA using the online form that I have linked. We can only give meaningful advice after seeing your SOA.

CanadianDream

I think it's great that you have learn to manage money more better now, and you closed multiple credit cards.


I recommend you keep going and pay off the debts yourself.

DCFC79

Khujiro wrote: »

Essentially at the moment my incomings are £2455, my outgoings for bills is around £1100, Shopping £400, other expenses sit around £200 and I've been paying £400 a month on debt consistently for nearly a year and living from what's left. I would reduce this to £269 a month with the loan which would leave me with more money to put into my emergency fund which is currently at £400. I also occasionally get decent overtime which isn't factored into this.

I have actually got very good with money and have closed multiple credit cards along the way and I've listened to a few audiobooks, podcasts and read on how to manage my money which is something I do frequently. I'm only asking whether this is technically possible?

Yes its possible but why dont you pay the debts off yourself ?

Have you done an soa and posted on debt free wannabe board ?

Reduce your spending, Im sure you can get it by yourself.

Gaz83

I'm not sure many lenders would be entirely chuffed with the reason for the loan when / if your brother applies.

Ben8282

Have you actually applied for any new cards and been declined? Not quite sure why having a daughter should be impacting your ability to obtain new cards and a net income of £2465 per-month is not exactly low. so I am not really sure of why you believe that you will have a problem or are experiencing problems. You say that your credit rating is below average due to your income but as the CRA providing this credit rating, by which I assume you mean your credit score, will have no idea of what your income is, your income level cannot be affecting this rating in any way. What sort of debt level do you have?
Did none of the multiple cards that you have closed along the way not offer any existing customer balance transfers that you could have used to transfer your debt to when the offers on the other cards ran out? They probably would have done so it is a shame that you closed them.