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Loans from friend to me

28 replies

Coffeecrazy · 07/10/2016 12:11

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 !

OP posts:
LoveMyRs · 07/10/2016 12:46

Its not an easy thing to ask. But depends on the friendship (how long? How close?) but i did that to a friend before and i was the one offering the help they didn't have to ask.

Coffeecrazy · 07/10/2016 12:46

Kate33 - your post makes me sad as i could see how that could happen. And that is a good point about it being a continuation of an attitude - maybe that is hopefully the last remnant of my old ways ? But yes I appreciate your message as you sound like you have experience and therfore I know I am not the antichrist /or a leper. ..Thank you x

OP posts:
kate33 · 07/10/2016 14:09

Of course not, you are just trying to find a solution to a problem! As the thread went on it was clear that you genuinely have been through tough times and have a lot of awareness now.
A few years ago I lent £2,000 to someone I have known for a very long time and thought the world of. I didn't think twice, I'd never been able to do that before and it was lovely to be able to help. Many people have helped me financially because I have made such poor choices in the past. Anyway, I was dependent on having this cash back every month as the rest was tied up in a house and business. From the get go there were problems, like I had to ask for it each month, it would be short etc. Then they would just give me tenner now and again. It got much worse but I've waffled on and on Grin I am not saying that you would have had any problems at all coffee but I think a lot of people have learnt the hard way and would like to prevent you from having the same heartache. The friendship is more important.
As you need the car for work so you can earn money to pay your debts is there no way you could get a repayment break so you could buy a better second hand car? The problem with a cheap one will be the repairs. X

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