Q&A

How can I convince an independent investor to lend me money?

I am currently looking to consolidate some existing debt as well as raising additional funds for home improvement and to make up for a shortfall in my salary last year. I am not interested in debt management plans as I would far rather have the satisfaction of physically paying these debts and then having money at hand to make up for what we have been short of these past few years. My credit rating is bad because I had a bad attitude towards my creditors (albeit slightly naive) but with age and experience I have learned a bit more about the ways of the world, although the damage this has done to my credit record is very debilitating when it comes to finances and life is actually a lot more complicated than it should be as a result. I am looking for someone who would be willing to get on my side and take the chance on me to loan me money which I would pay back over 5 years. I am a complete math/stat geek (black belt in Excel!) and spend most my free time convincing myself how much better my situation could be with a loan. What I need to know is what sort of return do you think people would expect for on this sort of loan? eg. I would like 20k, and repay something like 420 per month (this is around half what I pay just now across various high APR credit cards and loans which are gaining so much dead money). This would be a return of 5k over 5 years. Is this competitive with what would be available by commercially investing their money? Obviously there is far greater risk in such a proposal but I'd like to think I could offer a very personal service and build very strong bonds with anyone serious enough to help me help rebuild my families life (I would certainly be owe such a person a lot more than the money). Looking for any advice. I know this all sounds a bit like a Nigerian scam and too utopian for most people to understand, but having been down all other avenues I can't get away from the simple fact that the maths say a loan is the best long term solution for me, so I am making it my mission in life to find my own solution to a problem many people fall into when they develop bad credit for the wrong reasons. How can I make people take seriously? Believe me, this is a deadly serious request and I would be very keen to get into a good critical debate with anyone who can offer some insight in how to take this idea forward.