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DMP Guarantor?

RobEssex
RobEssex Posts: 40 Forumite
in Loans
Hello,

I'm currently looking to enter a Debt Management Program with payplan, I have a £500.00 Guarantor Loan with FLM quick as part of my debt, i'm just wondering what the process is with guarantor loans?
52 week money challenge £1/1378

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    If you enter into a DMP and make reduced payments FLM will expect your guarantor to make payments on the guaranteed loan.

    If they have their bank details (I think they do with FLM?) they will probably start taking the normal repayments from them as soon as they are informed of your DMP. If you guarantor cannot or does not make the payments then it will be their credit file that is affected.

    I'd definitely talk with your guarantor before you enter the DMP.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • RobEssex
    RobEssex Posts: 40 Forumite
    Is it possible not to include the FLM loan in the DMP - as its already the most affordable loan i have.
    52 week money challenge £1/1378
  • RichGold
    RichGold Posts: 1,244 Forumite
    1,000 Posts Combo Breaker
    No. That's why FLM asked for a guarantor, as they knew you wouldn't pay.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Tixy
    Tixy Posts: 31,455 Forumite
    You might be able to exclude it - talk to payplan and explain its a guarantor loan and you'd rather keep it out, they might be okay with it, or might allow it providing you repay it out of somewhere else in your budget (i.e by spending less than your budgeted outgoings, they probably won't make a provision for the repayment).
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • RobEssex
    RobEssex Posts: 40 Forumite
    OK cheers pixy
    52 week money challenge £1/1378
This discussion has been closed.
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