Is it legal to take out a loan to pay off someones debts and get them to make the repayments?

Answer 1

No it is not illegal at all. you get the credit and you choose what you want to do with it. The only thing is it is in your name and if they don't make the payments the owness will be on you - FACT.

Think very, very carefully bout doing this no matter how much you want to help someone. I presume that the person who you want to do this for has bad credit and can't get finance themselves? if this is the case is this the type of person you can 100% trust with money?

Obviously the decision is yours but be prepared to pay off the debt yourself should things go sour.

Hope this helps x

Answer 2

When you take a loan, it is your business alone what you are going to do with the money. If you are paying off someone Else's debts, there is nothing illegal with that. You can burn the money, give it away, gamble it or pay other peoples debts, that's your business alone.

To make them pay back, well you must either be very starry eyed and a risk junky.

There is no need to tell you you should not do it, that goes without saying that it's a bad idea, so I wish you good luck if you still dare.

Answer 3

Legally, you can take out a loan and use that money to pay off the debt, but you would be the one required to make the payment, not the person that is being bailed out.

This would put you at risk because if the other person does not mail the check, your credit is at risk.

Also, doing this would not help their creidt one bit since they are not on the loan.

But to get to the fact of the mater, it is legal to take a loan to pay off someone's debt, but you would be the one asked to make the payment, they would just be paying you to make the payment

Answer 4

No, it's not illegal, but since the loan would be in your name, you're taking a huge risk if they refuse/can't make the payments. I would never do it myself, with the rare exception that a CLOSE family member needed help....and even then, I'd have to try to determine whether or not they could even afford to make the payments. You also have to ask yourself, "if this person has so much debt, can I expect them to be responsible enough to make the loan payments?". I'd say no.

Answer 5

Not without a written contract stating if you take out this loan then they will repay...terms, etc. If you do it without their knowledge you have signed for the loan and are responsible. Even with the loan under you name, if they do not make the payments they will come after you and it will affect your credit.

This this through!!

Good luck!

Answer 6

HEY YOU SHOULD THINK BEFORE YOU DO THIS

1 WHY ARE THEY IN DEBT
2 CAN THEY AFFORD TO MAKE THE PAYMENT
3 WHY CAN THEY NOT GET A LOAN
4 IF THEY MISS THE PAYMENT CAN YOU AFFORD TO MAKE THE PAYMENT
5 IF THE LOAN IS IN YOUR NAME WHAT CAN YOU DO IF THEY SAY I AM NOT PAYING IT
6 DO YOU KNOW THIS PERSON SO WELL THAT YOU ARE WILLING TO PUT YOUR CREDIT HISTORY / RATEING ON THE LINE
7 YOU COULD END UP IN DEBT YOUR-SELF OVER THIS

Answer 7

If someone takes out a loan, the agree ment is between the lender and the borrower. If you are thinking of borrowing money to lend to someone else, then see a solictor to draw up a formal loan agreement with them to pay it back to you. Even then, if they default and have no assets, how are you going to recoup the money?

Answer 8

deliver the mastercard /sequence companies not something! Your state SOL governs what potential CA's have so do not fall for his or her act. do not talk WITH THEM! No touch. on the tip of the 300 and sixty 5 days pull your credit or purely connect a identity look after form provider that sends you loose credit comments each and every 3 months. it somewhat is the regulation that a foul debt falls off once you have stopped payinbg it 30 days and 7 years after no charge. in the event that they call and you be responsive to it somewhat is CA's say "you may have the incorrect huge form" and hang up and stick consisting of your existence. the greater severe element they are able to do to you is 1099-C you which of them potential you would be able to desire to be paying taxes in this money at some point in case you won't be able to coach worry which you in all probability can. basically the low of the low try this and it somewhat is a questionable act thinking the CA's pay pennies on the dollar for this debt and that they think of they are able to jot down off the full debt. the respond under that states that as lengthy as a CA or CC agency are attempting to pursue the debt it is going to stay on your credit is misguided!!! Do examine you states statute of limitations given which you do not prefer to get served a judgement this might screw you up for some years. Your almost on the tip of this nightmare so wait and notice and watch your back. After it falls off your credit they are able to nonetheless attempt to gather purely say incorrect huge form or deliver mail back as return to sender. by no potential talk TO THEM back! terrific of success!

Answer 9

In addition to the other posters' great advice about what will happen if the person you borrow for does not pay....
Be sure to think about what it will do to your friendship/relationship
THIS WILL DESTROY IT

imagine all the angry feelings you will have against this person WHEN they dont pay
(when not if, because if they were going to pay, they would have paid off the original creditor in the first place...please make up a reason and say no to this risky proposition)

Answer 10

This can be a dodgy arrangement, and you would have no come back if the person didn't make the payments. No matter how well you know someone, there is always a chance you could fall out, and you would be responsible fro the payments then.