Advice needed - family debt

sterlingendeavour

Good afternoon Mse forummers I come seeking aid by way of taking out a loan to repay part of a debt to a family member, due to me having 3 children, living in rented accomodation and being single income (full time employef) my plate is full!

Its manageable and I’ve budgeted for what is coming. I have roughly £2700 credit card ‘debt’ and a useful £500 overdraft.

plan is to possibly consolidate debt and pay a lump back to said family member.

can I get some advice on unsecured/bad credit loans, community banks and the likelihood of acceptance for a guarantor who lives abroad? 

Any words of experience would be massively appreciated.

TIA

Nasqueron

Guarantor who lives abroad almost 0 chance as it's difficult to get money from them if you stop paying

Debt consolidation is rarely a good idea, it sounds good but lenders have to assume you will spend the money elsewhere or just run up the debt again so judge affordability based on 2x your debt i.e. £2700 + £500 + £3200 loan 

You should go to the debt free wannabe page and paste a statement of affairs (SoA) and they will help you budget to clear the debt.

Don't borrow to pay debt

gwynlas

Unless your family member is desperate  why not pay them in instalments.

MEM62

sterlingendeavour said:

plan is to possibly consolidate debt and pay a lump back to said family member.

You cannot borrow you way out of debt.  It simply does not work.  Consolidation loans, particularly for those in your circumstances will attract a high interest rate and will only add to your pain.  You need an alternative plan to deal with your debts.  

sterlingendeavour said:

can I get some advice on unsecured/bad credit loans, community banks and the likelihood of acceptance for a guarantor who lives abroad? 

You probably can, but none of the above would actually help your situation.  And there is zero chance of a guarantor loan if the guarantor is overseas. 

You need to post up an SoA on the Debt Free Wannabe board where some practical advice will be offered.   

eschaton

If you already have debt them I’m guessing you don’t gave any savings in the bank?

If so, you can’t live debt free at the moment so how are you going to finance additional debt?

It’s not going to work out well. 

As already mentioned, a SOA would be a good start. 

enthusiasticsaver

I would agree this sounds like a bad plan.  You presumably are already struggling so adding more debt does not sound sensible.  If you have poor  credit it is even less likely to be agreed and no bank will accept a guarantor from overseas. 

Ergates

This will sound bad but....   It's better (for you) to owe money to a family member, without a contract, than to enter into a "formal" loan agreement, because without a contract, the family member can't do much if you fail to repay them.

Even fully wanting to repay the family member - it's still preferable to you because they're more likely to be flexible on payment dates/amounts.