Lending money to family

Gam2015

I have been asked to borrow about 3k to a family member with bad credit he is wanting to consolidate his debts into one payment he can’t get a loan out because he has bad credit he says he will pay me back every month. What are peoples thoughts on this? 

Grumpelstiltskin

Unless you can afford to lose the money don't lend it.

99.9% of the time it will end in tears.

Brie

ask him to submit a copy of his credit history and a full statement of accounts to show how affordable the repayments will be.  and you'll probably still lost the money.  

geordiejon

same as above done it a few times and wouldn't again, the heart rules the head in family cases.
if you do go through with it make sure they sign a contract with monthly payments and end of loan date.
also be prepared to take the person to court if they default.

maman

Grumpelstiltskin said:

Unless you can afford to lose the money don't lend it.

99.9% of the time it will end in tears.

I'm assuming you mean lending money to a family member rather than the borrowing in your post. 

While I think @Grumpelstiltskin is being over pessimistic with 99.9 % I do agree that you should only go along with this if you can afford to gift the money. 

BrassicWoman

terrible idea. terrible, terrible.

Flugelhorn

Just say NO

Sea_Shell

My initial reaction is no, don't do it.

But what's the relationship here?   Are they your child, sibling, parent, cousin ?   Are they older, younger.  Kids, no kids?

You could always ask him to complete a statement of affairs and see if you can help him budget....or tell them to come on here!

elsien

Point them at the debt free wannabe board on here, because unless they address the cause of why they’re in debt, they will carry on being in debt. And unable to repay you unless they adjust their spending in some way. 

newatc

After a few poor experiences, I now have a rule that I only lend if I don't mind if I never see it again.

tealady

Look at it as a gift, then decide.
How would you feel if you gave them £3000 of your hard earned money then they squandered it?
I know what my answer would be.