Loan with Parent as Guarantor

KEEP-3

Hi can anybody please help, I am trying to consolidate about £10,000 of debt (loan,credit card and overdraft) Ive been refused by HSBC and Santander for loans and the only people who can seem to offer any help are debt managment projects which I am trying to avoid unless required.

My parents have offered to guarantee me for a loan, however I am unable to find any bank/finance companys which offer this kind of loan.

Any help or advise would be apprciated.

CLAPTON

a guarantor is potentially totally responsible for paying the debt off if you default

so it would be much better for them to get a loan in their own name (presumably at a better APR than you can) and then you pay them each month

CHR15

Avoid this whole guarantor thing, it is nonsense.

If your parents are happy to guarantor, ask them to simply apply for a loan in their own name (as guarantors the debt is theirs anyway!!)

They will get a much better APR in their own name.

Any company asking for a guarantor are going to sting you on APR as they will use your poor rating when they decide your risk.

Just get them to take the loan, you create a standing order directly into their account for the monthly fee to arrive in your parents bank a week before the payment is due.

Your parents will be protected if you fail to repay (they are in control of their own credit rating), rather then being hit if you fail to repay.


EDIT: Bah! should've typed quicker!