Can I help my brother get out of debt using my good credit record?

basketcase

Sorry, my mistake about the repayment plans. I tend to agree with MAZ - especially about him coming on here with a SoA so he won't get into trouble again.

I'm not being harsh either. I find "How can I avoid getting another loan/CC?" to be much better than "How soon can I get another loan/CC?" and I speak as a person who thought that way myself and was almost £6000 in debt last June but am clear now. :j

The best thing that happened to me was when I tried to get a 0% card and was refused. I had to have a VERY SERIOUS rethink, because I couldn't juggle, as planned. At the time it felt :eek: . However it meant that when I got a bonus the new attitude made me use it to pay off an outstanding credit card and 2 overdrafts instead of over-spending at Christmas. and getting hammered for interest. I can also get a new TV for cash by putting the money I don't have to pay the cc away to gain interest for the 9 0% months before I need to pay the bill. And save for a proper holiday. All without worrying.

The difference between now and Jan 2007 is definitely :beer: :j :T so do get him to post here if you can!

Dizz

BTW....what is an SOA..?

(Land_of)_Maz

Sorry, it's a Statement of Account. See Stickys at top of this section of the forum for all you need to know. there's a new DFW dictionary to give you some of the lingo, as it can be a bit daunting and hard to interpret!

So do you think we will see Dizz's Bro as a username coming on DFW anytime soon, i hope so!

Take care meantime and let us know how it goes..... as i post this it'll bump the thread and you'll get more advice no doubt.

For sure i can say it's not likely anyone here will tell you to take a loan for him, but i think you know that already.

Maz
x

Kevicho

I think the problem is we all have to account for decisions we make, and by you paying off the loans for him, his attitude may not change for the better, and you are putting yourself at huge risk of losing money, which in fairness would be better spent on overpaying the mortgage.

Also if you are taking out a loan, then it will be in your name, meaning it will be YOUR responsibility to pay it back.

This means if your Bros not being completely above board with you then you will be left with an expensive monthly payment coming out of your account, meaning you will have to do the MSE lifestyle, which in fairness your brother should be leading to clear off HIS debt.

As others have rightly said the first thing to do is get his finances in order, find out where he can make savings in his lifestyle, im sure he could make cutbacks or get better deals to help him pay off his own debt.

Kevicho

Maz3374 wrote: »

Sorry, it's a Statement of Account.

<pedant mode> its actually statement of affairs</pedant>

wherediditallgo

I think he should be contacting any of the organisations in my signature for advice on how to manage his debts better. They'll be able to help him with letters etc, & as they're recognised organisations his creditors may take their involvement better than just having him trying to organise something himself.

In terms of getting a loan out in your name & him repaying you, I really don't think it's a good idea. Obviously, you know your brother better than we do, & you'd like to help him where you can. But part of the reason so many of us are in debt is that we've had to deal with circumstances after taking out the loan/credit card etc that we didn't foresee - loss of jobs, having to move home, car being a write-off, illness, so many things can happen that totally change your ability to make your payments from one month to the next. He is hoping his credit rating will improve in a year's time, but it's very likely to take a lot longer than that. What happens if he loses his job or his hours get cut back? And standing guarantor for someone else is a definite no-no unless you have the money to spare & won't miss it if you lose it. What happens if your own circumstances change & you find you can't cover any payments he misses? Then it'll be both of you in debt, & your credit record messed up as well as his.

You have a good relationship with your brother. The best way to keep that is to direct him towards any of the organisations who can offer him impartial advice, & help him read through the forums here for help on what cutbacks he can make within his own life. He'll feel a lot better for sorting it out himself over a longer period of time than having you throw a lump sum at it as a quick fix. Money can mend a lot of things, but I've never yet heard that it can mend broken trust, & if he doesn't make the payments for whatever reason, your relationship could be damaged for a long time. Best thing therefore is not to put it at risk in the first place.

G-G_4

Don't do it.. If he is anything like I was he will just run up more debt.. he is panicking now because he has no access to further funds to spread his debt over.

What is to say that you take the loan out for him and he gets a credit card in a few months time and uses that to buy a much need 'thing'.. that in reality he could do without.

The reason he can't get anymore credit is because he is in a very sticky position..

He needs to realise quite a few things to do with income and expenditure and you bailing him out will not help him realise these things.

His debt is not your responsibility, so try not to feel bad if you do decide to turn him down.

I suggest he works out how much money he has coming in and how much he has going out, then he can work out how much he has to spend on himself / cost of living etc.

If he doesn't have enough coming in then he needs to get a extra job to pay for it.. or sell some personal items to make up the loss.

He needs to work this out for himself, if someone had been tough on me I probably wouldn't have gone bankrupt last month..

(Land_of)_Maz

Kevicho wrote: »

<pedant mode> its actually statement of affairs</pedant>

Nobody likes a smart @rse! lol!

i stand corrected!

PayPeanuts_2

The other thing to consider carefully is god forbid if anything happens to him - illness, death, redundancy, mental health issues - you will still be liable for all the money.

It doesn't matter how much you trust him, some things are out of his control.

jude47

Hi Dizz

I have to say I agree with everyone advising you to be cautious. If you sign as guarantor or borrow the money on his behalf then God forbid, it goes pear shaped for your brother and you can't make the payments yourself, the creditor can and will come after you - worst case scenario you could lose your home if they go down the charging order route, and with the credit crunch, more of them are taking action sooner.

I hate to be the bearer or bad tidings, but PLEASE don't borrow for him or act as guarantor. Wherediditallgo is (as always) bang on to say get him to contact one of the free debt advice charities to get some options sorted out that don't involve more borrowing for anyone.

I wish you both well - let us know how it turns out?

Jude xx