Friend has asked me to be a guarantor

AMILLIONDOLLARS

The fact that they NEED a Guarantor in the first place, is a plain indicator that they are an absolute risk with money and the lender are looking for someone to pay back their debit when they default, £5000k for a car debt:eek:, no way! even if the car is repossessed and sold at auction for less than its worth, you'll still be liable for the shortfall.

As other have said, don't touch this with a barge pole, remember, a refusal often offends, a true friend would not put you in this difficult position.

AMD

KingElvis

Well done, you've saved yourself a whole heap of trouble there.

People who need these loans are not to be trusted with money, they've proved themselves to be financial disasters and people don't change...I bet a months salary that you would've ended up with this miserable debt sooner rather than later.

Rupinder_Khurana

Hi dear,

Even if you are being asked to be second guarantor, though the liability doesn't end here. This means on being default in payment, your friend who is purchasing the car, shall be liable for payment. In case he is unable to pay, then the first guarantor will be asked to pay and on his default the second guarantor. Because you are asked to become the second guarantor, it does not mean you won't be liable.

You will be safe as long as they keep up the payments. In case of default in payment, though in the remotest of the sense, you will be called for payment of the outstanding, being the second guarantor.

Therefore, look into the flip side of it as well before agreeing to become the guarantor.

Regards,

Peelerfart

Well that's all clear now then!

opinions4u

I've never delved in to the world of "guarantors" when it comes to unsecured credit.

Don't most lenders just add the "guarantor" to the credit agreement as a named applicant with absolute liability?

[Deleted User]

Peelerfart wrote: »

Well that's all clear now then!

Yup, thanks for helping us out there Rupinder. I think we were all in favour of it until you popped in.

DCFC79

You may feel obliged to help her out by going guarantor on the loan but you will regret doing do so IF the repayments are not met and your the 1 who has to make up the shortfall. You could help her out other ways if you feel obliged to do so.

DCFC79

shygirl54 wrote: »

It has played on my mind so much all night since I posted and saw the replies that I could not wait until tonight after work to tell her, I have sent a text message early this morning saying I did not want to be a guarantor, (I know I am a coward) but I have done the right thing as I feel like a weight has been taken off of my shoulders. Thank you all for the support.

your not a coward, your making the right/sensible choice

fadetogrey

shygirl54 wrote: »

It has played on my mind so much all night since I posted and saw the replies that I could not wait until tonight after work to tell her, I have sent a text message early this morning saying I did not want to be a guarantor, (I know I am a coward) but I have done the right thing as I feel like a weight has been taken off of my shoulders. Thank you all for the support.

You have done the right thing,your a new poster on here and the last thing anyone here wants is to see you back on in 6 months time looking advice because you DID go guarantor and now your "friend"defaulted and your landed with the bill.

RichGold

Contrary to what everyone else has said, I think you should have gone guarantor for your friend. She sounds responsible enough to understand what having you as guarantor means, especially after being kind enough to fill you in on the legalities of the whole process in that if they fail to pay, you will not be liable (which is of course completely true).

Whats more, after all their previous financial troubles I think they actually deserved a new car, and I believe you to be uncaring and spiteful for not helping them.

You should have considered it an honor to become a guarantor for your loyal friend, after all, who wouldn't want to be encumbered with possibly £12k of debts and late fees that someone else had run up for them and then to be chased by bailiffs and have your credit file trashed? Sounds like my idea of fun.