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Loans from friend to me

(29 Posts)
Coffeecrazy Fri 07-Oct-16 12:11:15

I am contemplating asking my friend to help. Short background - dh and I had a failed business 6 years ago, and we're perhaps also a little frivolous before that - think too much credit card. Resulting in a long time on a repayment arrangement with our creditors, and now a legally binding version of this as we are 2 years into an IVA . We are on the insolvency register but are not bankrupt and for the last 5 years have been managing our finances with no credit and repaying our old debt . Basically , we have learnt our lesson and are now secure and comfortable and on the road to being debt free. This week we realised our old car has reached the point where we need a new one. Because we are on the register we have an extremely low credit score. With our Insolvency Practitoners permission we have a loan offer to buy a new car but it comes with various caveats ie has to be a minimum 4000 pound and the interest rate is 65%. So we pay 10500 back over the term . That is so ridiculous we are really not comfortable with that. The only other choice what I was thinking would be to ask a very good friend who has an excellent credit score to take out a small loan with obviously much better rates (think 6.5%) that we are completely responsible for . They will jit be out of pocket a penny - we know we can afford repayments no problem . We literally just want to use their good credit score. Dh thinks this is a very reasonable favour to ask of someone but I am not so sure. On the one hand, the loan we have been offered is crazy , we do need a car for work and he numbers make sense. On the other hand , is it very cheeky yo ask someone to do that , would it make it difficult between us ? Are we massively unreasonable ? Thoughts would be massively appreciated !

gininteacupsandleavesonthelawn Fri 07-Oct-16 12:16:42

how much are you asking for? In that situation I'd expect you to save what you could and perhaps top up a few hundred to get a cheap runaround if your current car is completely not road worthy.

annielostit Fri 07-Oct-16 12:18:02

It's an outrageous thing to expect a friend to do.
Take yourself &dh out of the picture. Look into the situation, would you lend yourself money? I doubt it.

NewStartNewName Fri 07-Oct-16 12:19:54

That's unbelievably cheeky! Don't put your friend in that position.

OhNoNotMyBaby Fri 07-Oct-16 12:20:14

Sorry, but I would not ask a friend - you would put them in a potentially very uncomfortable position. And if I were a friend who knew your circumstances I would not loan money to you either.

As above, I would suggest you save what you can and buy a cheap runaround.

Givememorewine Fri 07-Oct-16 12:20:57

In the circumstances you describe, there's no chance I would loan you that money. It would be really unfair to put your friend in that position by asking.

Your bad planning doesn't constitute an emergency on her part.

mouldycheesefan Fri 07-Oct-16 12:21:09

No it's not reasonable to ask a friend to take about a loan for you. You need to find a different solution I am afraid. You friend would be liable for the debt and your last history with money isn't great. If you couldn't work or fell ill etc the friend is liable for repaying the debts.
You have to sort this yourselves another way.

SheldonsSpot Fri 07-Oct-16 12:22:46

No. Unbelievably cheeky.

Coffeecrazy Fri 07-Oct-16 12:25:45

All really good points - we did not plan ahead that is true . And if I put myself in her shoes I hand on heart probably would not either - it's just not worth risking the friendship for all those reasons you have all pointed out. That's probably why it feels uncomfortable to me - on some level I think I know this and that's why I am asking ! X

Floralnomad Fri 07-Oct-16 12:27:54

It's bad enough asking a friend to loan you money ,asking a friend to get a loan on your behalf is beyond cheeky .

Chippednailvarnishing Fri 07-Oct-16 12:28:37

There's a reason why you have a crap credit score and you would have to pay a very high interest rate on a loan.
The first reason is that you have a history of handling money poorly.
The second reason is that you have an air of entitlement that completely overshadows any moral or logical reasoning.

Assuming that this isn't a reverse of some sort, I hope your friend tells you where to go.

idontlikealdi Fri 07-Oct-16 12:28:52

Sure fire way to ruin a friendship right there.

Coffeecrazy Fri 07-Oct-16 12:29:23

Thank you very much for giving me a reality check one and all 😊

Givememorewine Fri 07-Oct-16 12:29:30

OP tbh I'm gobsmacked you're even considering it! You need to shut your DH down grin

ElaeudanlaTeiteia Fri 07-Oct-16 12:30:22

I have bad credit too and I would never ask a friend to do that. I wouldn't ask my own mum to do that for me. Even though I know I wouldn't stiff them, I just wouldn't want to put anyone in that awkward position.

Coffeecrazy Fri 07-Oct-16 12:34:50

Gawd - if I sounded entitled I certainly did not mean to - I was trying to give the abridged version of last 6 years ! Yes we have an old history which we have addressed and are working towards end point. It certainly has not been easy and certainly no decisions were made lightly on the way - we have had no credit accounts for years because we have changed everything we do to make sure all is managed but obviously we don't have stacks of savings is all. I accept wholeheartedly responsibility for the past and I also accept we should have planned for this better. Fair enough. And after thinking about what you said , I most definitely won't be asking ! I am not crazy I promise you and I value her friendship too much !

rookiemere Fri 07-Oct-16 12:35:55

No way should you do that unless you're happy for the friendship to disappear and you become business partners.

Paying back a person on a regular basis does that. Imagine in the future if you're short of funds one month, does your payment to your friend take priority, or because she's a friend do you ring her up and ask to postpone it?

Horrible situation to put her in. Just No.

rookiemere Fri 07-Oct-16 12:36:22

Sorry cross post - think you've got the message already !

Coffeecrazy Fri 07-Oct-16 12:37:44

Givememorewine - yes I will don't worry ! Elaudena - thank you for your honesty . I appreciate it - money is my problem no one else's and this would make it their problem. I am not willing to do that. Glad my moral compass is not completely shot ...

kate33 Fri 07-Oct-16 12:38:18

I thought the old adage about money and friends was a cliche until last year. Please don't do this. It's almost imperceptible at first but it changes the friendship. Say something went wrong (purely hypothetical ) with your financial situations. God forbid but you lost your job or couldn't work for some reason. Could you meet your repayments? So then friend would have to pay the money or have their rating damaged. That's your friendship gone, right there. Even asking is a minefield they may long to help but can't or think you're cheeky as! The only options are set up a go fund me page and ask four thousand people for a pound, get bikes, save for a cheap run around, rely on public transport. Probably only one of these is an optio for you really. I say all this as someone who has never lived within her means and paid the fucking price! But look on your money situation as a blessing, as a wake up call to completely change the way you think and feel about money. You sound young enough to be able to have a second chance. Asking a friend to do this is a continuation of the behaviour that got you to this point.

Coffeecrazy Fri 07-Oct-16 12:39:00

Rookiemere - still relaxant and thank you ! 😊

ShowMeTheElf Fri 07-Oct-16 12:39:10

Have you considered leasing a car for a year op?
The interest might be less onerous.

Coffeecrazy Fri 07-Oct-16 12:39:38

Haha meant relavant! !blinking predictive text !

Coffeecrazy Fri 07-Oct-16 12:41:45

Showmetheelf no I hadn't - will look into it but still perhaps the old banger may well be the way to go I think...! Thank you so much for the suggestion !

SpeckledyBanana Fri 07-Oct-16 12:42:08

Round here you can buy an old runner for £600-800 from the smaller garages. If I was in trouble with money I wouldn't be looking to spend £4k.

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