Would you get a loan for a family member??

[sparklymieow]

MIL has asked us to get a loan in our name for her as they are unable to get one. Her husband has spent so much money on those shopping channels they are in 2.5k debt!! Now she keeps on at DH about it, but my mind is screaming NO!!! Its not that she won't pay it, I know she would, but if something happened to her H then she would struggle with the payments as she is only on Incapity benifit. He had a heart attack 6 years ago, and isn't in the best of health. Also a small part of me is thinking that they are adults and should sort out their own problems. Its is stressing DH out and god knows, he has had enough stress this year.

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I wouldn't as surely if they default on payments it would then comeback to you - not sure that I would want to be a bad credit rating due to someone else

no, i wouldn't.
because as much as you believe she would pay it there can always be times when they ask to miss a payment etc etc...
it could get a bit messy

No I wouldn't, lots of people and families fall out over money.

The thing is its not just a few hundred, its 2.5k they want, and I have enough debt of my own. She keeps phoning DH and asking if he can possibly do it.

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they're unable to get a loan for a reason.
they're in debt already... why on earth get into more?????????

They want to pay off everything and have one payment, I guess it will be less a month.

I told DH not to do it, I said to him, that if his stepdad died then how would his mum afford the payments?? He thought about it and agreed with me. But she keeps on at him about it.

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unless you are prepared to be able to pay it should they for any reason not do so then don't do it.

Definitely not in this case.

They do have a car but because MIL is disabled they need the car, and she won't claim DLA because she is stubborn...... I'll tell DH to tell her that we couldn't get the loan for her.

No. HOnestly, we're in no position to take on further debt for ourselves, much less someone else. It's just setting yourself for a nasty fall. WAY too much stress if you ask me.

I mean, hon, you've got a move coming up and a new house to furnish, a dog to get rid of , etc. You've got a lot on your plate as it is.

I want to moveeeeeeeeee NOW!!!!

you will. soon enough. it'll be so worth the wait! and w/o worrying about someone else's debts hanging over your head.

the house is ready EIS, its there, tormenting me but the builders have to soundproof all the properties because of DHL. (BIL just said to me on MSN, its because we are very noisy!! )

no sorry I wouldn't. If they run into difficulties (her dh sounds fairly weak willed to have got them into that situation) and don't pay it will reflect on you and you never know if you might need a loan yourselves in the future and not be able to get one as a result. Sorry to be depressing but what if the worst happens and one or both die while the loan is still outstanding and you have to continue to pay it ? Even if they consolidate to get a lower monthly payment now they will find that the term will be so long they'll pay off what they owe and plenty more in interest. It all gets too personal and messy where family and money are concerned.

Absolutely not.

Exactly, LIZS. Besides, you might later need to take out a loan for yourselves and your own family.

Before you know it, you'll be in your new, soundproofed house .

One word answer - no!. A loan is not the answer to their prayers here and its just another debt. Its robbing Peter to pay Paul. The main difference this time is that you will end up paying for it. They seem anyway as a couple to have little if any spare cash so how can they afford any loan?. Short answer is they cannot so put pressure on you to oblige. Keep saying NO!!.

Would certainly agree with LIZS re her comment on consolidation.

I told her today that we couldn't get a loan for her.

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not well, but what could she say, honestly??