Friend asked dh for 2 year loan

Was speaking to a friend this morning who has lent a 'friend' £10k. Said person has made it clear he will not be paying it back and has put himself in a position where small claims won't be viable.

She is so shocked and upset she is having therapy about it. This person was desperate and in need too, really played on her sympathies.

Personally I wouldn't lend anyone other than my child any money. I wouldn't trust anyone else.

25k is more than most car loans are, and car loans are taken out over 5 years generally. NO WAY can friend pay back 25k in two years. NO WAY!!! If he could afford to do that in two years, he wouldn't need a loan, in the first place, would he? He's taking your husband for a fool.

This. It’s a terrible idea overall, but if he does do it, make sure it’s all legally recorded.

Hey friend, can I borrow money from you to Kay back another friend? I'll some how magically have the money to pay you back that I didn't have for other friend. Honest.

Make sure your husband gets a legal contract set out, or at the very least gets some type of legal documentation/paper trail.

1. tax
2. his friend had £1000 per month to pay back??? How
3. your dh is bonkers

If this money has gone on everyday spending, how is he going to manage future everyday spending and paying you DH back. Another vote for not doing it. He needs to go to a proper lender.

£25k repaid over 2 years is over £1000 a month. Do you really think the friend, who is clearly not great with his finances, can or will be able to repay this every month? It’s not £100, it’s a huge amount of money that I personally think you’d be giving away. Are you comfortable with this?

If you're unable to persuade your DH to not do this then at the very least, get him to draw up something in writing, confirming it's a loan, the timescale for repayment and how much to be repaid each month. If the friend defaults then this is the only way you'd have any chance of taking him to court for it. Your DH also has to be prepared to do what is necessary to recoup his money in the case of default. If he's a "soft touch" then would he be unable to take action if the friend has lots of kids to support? It's a very bad idea to do the loan and I personally wouldn't.

This is going to be unpopular but I would 100% just tell her. I would have loyalty to her not her husband. Obviously I would have loyalty to mine, but unless he told me not to tell her, sometimes it is better to ask for forgiveness not permission etc....
He is basically taking on a loan to repay another loan. First he needed the money. He took out a loan but essentially is not in a position to pay it back, hence the second loan. It is unlikely the economy or cost of living will improve, so I doubt he will ever pay this back. If he is borrowing from friends and not banks then there will be a very good reason why no legitimate financial institution will lend to him.
It's not fair that she is oblivious to this. Maybe she can help the situation (spend less or earn more) if she is aware.

I would not lend him any money. He's clearly an habitual borrower. Your husband will never see this money again.

I’d be saying a hard and fast no. He clearly got himself into a mess borrowing off friend 1 in the first place. And rather than working towards paying that back himself, he’s expecting your DH to bail him out. He’s learned nothing.

Your husband is insane. And as a pp has mentioned he'll have to pay tax on withdrawal so it'll end up costing you more than 25k.

You need to tell his wife straight away. He could be hiding gambling debt or anything.

Never lend money that you can’t afford to lose.

Debt advisor here. Do not touch this with a bargepole. 99% of the time this only ends one way.

This is never going to end well. I would go so far as to say it might wreck your relationship too. No advice but much sympathy.

Borrowing from 1 friend to pay back the loan from another friend?

I'm sorry but he's a financial mess. Your DH would be crazy to do this.

The £25K won't be repaid and the friendship will end acrimoniously.

What other secrets does he keep from his wife? Gambling, drugs? Why did he need to borrow £25K to begin with. It's a lot of money.

You're just joining in the awful mess if you do this.

So .... this "friend" is borrowing money from his friend (your DH) to pay back money he owes to another friend but cannot pay back? Have I got this right?

Frankly your OH would be crazy to become the next friend whom this "friend" cannot pay back. What can he be thinking of?

Offer this "friend" financial advice by all means.... put him in touch with debt counsellors ... offer kindness and support. But do not let one penny of your family money get anywhere near him.

So he just goes friend to friend borrowing thousands from one to pay back another?

This seems like a very bad idea .

And your DH would be a complete idiot to lend him this.

This man has got into debt and got a friend to bail him out, been unable to pay him back and is now looking for another friend to plug the gap. Alll without admitting to his wife that his finances are in a bad way. Guess it's up to your DH what he does, but I don't think that lending this friend more money will help unless he addresses the root cause of his overspending and makes a plan with his wife for sorting out their finances.

That you are aware of you mean. That is not a normal sum of money to borrow from a friend, it's huge!

It seems very unlikely that this guy will have a spare 1K every month for the next 2 years to pay to your DH: If he did he wouldn't be in the mess he is in. Your DH will not get much (if any) of this money back.