Friend has asked me to be a guarantor

shygirl54

Can anyone advise me on being a guarantor for a friend's husband for a car loan. She has said that I will not be liable for the money if they default as it will go to the first guarantor who is their son but then said the lenders would just take the car back. I was concerned as I do not want to be liable to pay for the loan, and also I do not want my credit rating to go down, but she has assured me that this will not happen and that it would not affect me in any way.

I feel obliged to be a guarantor has she has helped me with things in the past, although certainly nothing as large as a £5000 loan over 3 years.

I feel I am in a very difficult situation.

Shygirl54

[Deleted User]

simple answer DONT DO IT friends and money dont mix,also why do they need you if their son is already doing it?

pearl123

Just don't do it ! If your friends husband need a loan it is his problem and has nothing to do you you. Stay well clear.

sprite1508

Nooooooooooooooooooooooooooooooooooooooooooo!! please dont do it, read my thread- it makes no difference if there the nicest, best, longest friends in the world if they cant pay for what ever reason you will HAVE TOO wether you like it or not, simple!

https://forums.moneysavingexpert.com/discussion/comment/46693877#Comment_46693877

Judith_W

Nooooooo! The one thing guaranteed to ruin a good friendship is not saying no to this request - but saying yes and resenting it/there being a problem. If they do not pay and it comes to you, then you are defaulting on the loan - even giving the car back.

Please please read some of the messages on here when 'friends' have been screwed over. Not saying this is the situation here, but so much can happen in 3 years.

Chrisblue1962

Echoing the other posts - NO, Do Not Do this!

It will end up being costly in terms of cash and your friendship.

If your friend gets upset then they aren't much of a friend to put you in an awkward position like this.

elsien

Only agree to be a guarantor if you can afford to lose the money if it all goes pear shaped. Regardless of your friend's promises, that is the bottom line. If there was never the remotest possibility of you having to pay any money out then you wouldn't be needed as guarantor. Simples.

immoral_angeluk

shygirl54 wrote: »

She has said that I will not be liable for the money if they default as it will go to the first guarantor who is their son but then said the lenders would just take the car back.

She's lying.

I was concerned as I do not want to be liable to pay for the loan, and also I do not want my credit rating to go down

You WILL be liable for loan as a guarantor if they default, it's the whole point of guarantors.

but she has assured me that this will not happen and that it would not affect me in any way.

She's lying.

I feel obliged to be a guarantor has she has helped me with things in the past, although certainly nothing as large as a £5000 loan over 3 years.

You'd do well to keep emotions out of it. They won't mean anything if/when they default and you're hounded for 5k. It's fairly certain your friend would also no longer be a friend at that point.

The answer is simple, don't do it. Them needed a guarantor suggests they have a bad history of repayment and they're ALREADY talking about what could happen if they default. It doesn't bode well, steer well clear.

shygirl54

Thank you all for your replies, they are appreciated. I am obviously worried about it and although I said I would read the terms and conditions before I signed, you have all now made me feel it would be the wrong thing to do. I have now just got to tell her and see if she will still be my friend! Thank you again.

mrcow

Tell her that you've checked your credit rating and it's rubbish and that no loan company would touch you with a barge pole.

sprite1508

be honest and say you dont want to be liable for anything you dont have to be in this time of money uncertainty ...... if she falls out with you then she wasnt a friend to begin with and wouldnt have give a sh*t if it all went pear shaped anyway...... your doing the right thing - my `friends` are getting a ccj wednesday after ignoring two letters from me, the loan company and now court papers - some friends eh...