Seeking advice on a family debt

sterlingendeavour

od 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

Mark_d

Taking a loan to repay the family debt is likely to be more costly and put you in a bad position financially.  Is there any way of working with the family to work out how you can repay that debt and possibly reduce your other debt at the same time?

fatbelly

You are going to end up paying a lot of interest to a subprime lender i don't think that is a sensible strategy when you already have a credit card and an overdraft.

Try to reach agreement on payment by instalments that allows you to get out of the overdraft and pay more than the minimum to the card.

x_raphael_xx

If you take out a loan you will also have to pay interest on top.

Could you agree a set monthly payment with your family?

Consolidating is not often advised, most people don't 'fix' the behaviours behind the debts and end up running up the credit cards again.

You only seem to have the 3 debts - CC, overdraft & family. I'm sure with a budget and plan you would be able to manage.

Sea_Shell

Are family putting you under pressure to repay them?

Can you discuss your finances with them, and would they by sympathetic to your circumstances, and be happy to wait?

Have you missed any unofficial repayment agreements, and broken their trust?

Don't swap "unofficial" family debt for "official" debt.

ManyWays

how large is this family loan?

sourcrates

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? 

Any words of experience would be massively appreciated.

TIA

Yes, my experience says don`t do it, do anything but take out a bad credit loan, especially a guarantor loan, you are just asking for trouble.

Also I`m not sure any UK lending institution will entertain a guarantor who lives abroad, both of you must be UK residents for the majority of what you might loosely term "reputable loan companies".

Its a much safer option to re-negotiate money from your available budget rather than resort to extreme measures such as this, as it would not end well.