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  • FIRST POST
    • LMJ10
    • By LMJ10 22nd Sep 16, 4:16 PM
    • 106Posts
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    LMJ10
    Guarantor Loans in a DMP
    • #1
    • 22nd Sep 16, 4:16 PM
    Guarantor Loans in a DMP 22nd Sep 16 at 4:16 PM
    Hi

    can anyone help?

    i have 2 x Guarantor loans that need to go into my DMP has anyone done this and do they anyway go after my guarnator no matter what? or do they accept the payment offered and not got after my guarantor?
Page 1
    • sourcrates
    • By sourcrates 22nd Sep 16, 4:20 PM
    • 7,532 Posts
    • 7,470 Thanks
    sourcrates
    • #2
    • 22nd Sep 16, 4:20 PM
    • #2
    • 22nd Sep 16, 4:20 PM
    Your guarentor will be pursued for the full outstanding balance.

    The clue is in the name "guarentor", unfortunately they will be expected to pay if you don't.
    Last edited by sourcrates; 22-09-2016 at 4:32 PM.

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  • National Debtline
    • #3
    • 22nd Sep 16, 4:23 PM
    • #3
    • 22nd Sep 16, 4:23 PM
    Hi LMJ10


    Even if the lender accepts the reduced payments you personally offer them via your DMP, this doesn't restrict their right to pursue your guarantor to make up the difference, and that is precisely what I would expect them to do here, I'm afraid.


    If possible, it would be good for you to forewarn your guarantor that they may begin to receive correspondence to this effect. Have they given any sort of bank details to this lender that would allow them to debit payments from the guarantor's account?


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • LMJ10
    • By LMJ10 22nd Sep 16, 5:33 PM
    • 106 Posts
    • 83 Thanks
    LMJ10
    • #4
    • 22nd Sep 16, 5:33 PM
    • #4
    • 22nd Sep 16, 5:33 PM
    Yes they have my guarantor details

    So really they don't help people in difficulties just cause more problems

    Stepchange have said they'd prioritise the guarantor loans but I'm not sure I like this cuz I'm sure it would upset the other creditors. Big mistake lending from these!
    • zx81
    • By zx81 22nd Sep 16, 5:37 PM
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    zx81
    • #5
    • 22nd Sep 16, 5:37 PM
    • #5
    • 22nd Sep 16, 5:37 PM

    Big mistake lending from these!
    Originally posted by LMJ10
    Even worse if you borrow from them.
    • LMJ10
    • By LMJ10 22nd Sep 16, 5:43 PM
    • 106 Posts
    • 83 Thanks
    LMJ10
    • #6
    • 22nd Sep 16, 5:43 PM
    • #6
    • 22nd Sep 16, 5:43 PM
    Even worse if you borrow from them.
    Originally posted by zx81
    Yes that's what I meant
  • National Debtline
    • #7
    • 22nd Sep 16, 5:48 PM
    • #7
    • 22nd Sep 16, 5:48 PM

    Stepchange have said they'd prioritise the guarantor loans but I'm not sure I like this cuz I'm sure it would upset the other creditors.
    Originally posted by LMJ10

    That is a possibility, but it is worth at least exploring if trying to "protect" your guarantor is particularly important to you. I'm sure Stepchange would not have suggested this approach if they thought it would be a total non-starter.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • sourcrates
    • By sourcrates 22nd Sep 16, 8:21 PM
    • 7,532 Posts
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    sourcrates
    • #8
    • 22nd Sep 16, 8:21 PM
    • #8
    • 22nd Sep 16, 8:21 PM
    To avoid any unpleasantness, it would be wise to treat the guarantor loans as essential payments, use money from the other debts if nessessary.

    They are to all intents and purposes secured debts, so should be a priority.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • Thrugelmir
    • By Thrugelmir 22nd Sep 16, 8:32 PM
    • 49,967 Posts
    • 41,620 Thanks
    Thrugelmir
    • #9
    • 22nd Sep 16, 8:32 PM
    • #9
    • 22nd Sep 16, 8:32 PM
    Yes they have my guarantor details

    So really they don't help people in difficulties just cause more problems
    Originally posted by LMJ10
    Without a guarantor they would never have of advanced the money to you.

    Only you know your full personal circumstances, and whether it was the right decision.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • MrsTinks
    • By MrsTinks 22nd Sep 16, 9:09 PM
    • 14,249 Posts
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    MrsTinks
    Yes they have my guarantor details

    So really they don't help people in difficulties just cause more problems
    Originally posted by LMJ10
    Well... let's be fair, this is EXACTLY why they required you to have a guarantor. In the event you can not repay them then they had someone who could, thus partially reducing their risk of lending.

    I abhor guarantor loans, but I understand the business model

    Maybe if you share some more of the details and your situation we can give you some better advice?

    It's possible you can prioritise the debt to the guarantor loans, but it may depend on what debts/money for repayment you have and maybe even who your creditors are.

    It's no good shouting at the lender for potentially going to your guarantor when that was exactly the reason they lent the money and your guarantor would have been aware of this when they signed and were credit checked...
    Sept 2016 - 10811 to clear FlyLady challenge taken up! Declutter 50 items in Sept target: 1/50 Make 10 extra a day in Sept: 110/300
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    • LMJ10
    • By LMJ10 22nd Sep 16, 9:28 PM
    • 106 Posts
    • 83 Thanks
    LMJ10
    I'm well aware of why they lent to me and the guarantor process don't really need a lecture about them, was just asking the question if anyone has added one of these loans to a DMP
    • LMJ10
    • By LMJ10 22nd Sep 16, 9:29 PM
    • 106 Posts
    • 83 Thanks
    LMJ10
    To avoid any unpleasantness, it would be wise to treat the guarantor loans as essential payments, use money from the other debts if nessessary.

    They are to all intents and purposes secured debts, so should be a priority.
    Originally posted by sourcrates
    Thanks - yes I think I may have to do this stepchange have said they can do this.
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