Amigo loans

debtcutter

sorry space bar not working properly. Having to punch it to work!!!

SnowTiger

debtcutter wrote: »

I understand people here saying that you shouldn't be a guarantorfor random people, but mine was my mum, if she asked me to be herguarantor then I would to, same for my brother and same for probably1 of my friends and my girlfriend, anyone else, no.

Make sure you read this thread, which is pinned to the top of this message board, before doing so.

There are plenty of horror stories posted here by people who have lent money to trusted family members and friends.

Being a guarantor for someone is effectively lending them money. It's even worse than that: it's borrowing money to lend to them.

KingElvis

Guarantor loans, the last refuge of the financially baffled shyster....

The stories on here make me shudder, how people can rip of their own family and friends is beyond all belief...but the do, and plenty of them.

bargainbetty

I wouldn't stand as guarantor for anyone. I'd sell my car to give my family the money if they needed it, but I wouldn't stand as guarantor.

By the time the lender comes after the guarantor, the loan is usually well into non-payment, and you face a huge bill or default. I won't hand over the hard-won control of my credit report to anyone!

One of my best mates borrowed money from me in dribs and drabs over the years. When she got an insurance payout, she bragged to me that 'everything' was paid off in full - she had no debt. I sat there looking at my empty hand as she crowed....

I'd stopped lending her money some three years previously when she told me she needed me to use my credit card for something online, and then admitted she wouldn't be able to pay me for three months. I asked about her paying the interest, and she got stroppy. Apparently, I was expected to lend her money at 16.9% cost to myself. I refused. After the next refusal (Could you lend us £200 till payday? When's payday? Don't know, we're not working this month, waiting till we get back from the camping trip) she didn't ask again. However, she also never repaid me. This was one of my very best friends. I will never trust her with money again.

lollie182

I know this is almost a year late but I would just like to say a Guarantor doesn't always have to pay a penny. Everyone here is saying the friend will always end up paying it back!

My Grandad was my Mum's guarantor for our flat as I was growing up. He NEVER had to pay a penny towards it. I was looking at getting an Amigo loan as I can't get one from the bank as I don't earn enough a month. I want it to pay off my Christmas debt (and others from needing new work clothes when I took up a new job and had nothing suitable and my very small child suddenly becoming very tall for her age in 2 week and needing new clothes) as I can easily afford the £48 a month Amigo Loans have said over 3 years than the £200 a month over the next 3 months. So in Theory I can imagine that Amigo Loans would be better for me and it would be VERY unlikely someone who became my Guarantor would ever touch it.

I'm not definitely doing it btw, I am still considering all my options but I don't think people should dismiss the Guarantor aspect when it is really just a safety net and anyone with a brain would never apply if they definitely cannot afford it.

chris-j

lollie182 wrote: »

I know this is almost a year late but I would just like to say a Guarantor doesn't always have to pay a penny. Everyone here is saying the friend will always end up paying it back!

My Grandad was my Mum's guarantor for our flat as I was growing up. He NEVER had to pay a penny towards it. I was looking at getting an Amigo loan as I can't get one from the bank as I don't earn enough a month. I want it to pay off my Christmas debt (and others from needing new work clothes when I took up a new job and had nothing suitable and my very small child suddenly becoming very tall for her age in 2 week and needing new clothes) as I can easily afford the £48 a month Amigo Loans have said over 3 years than the £200 a month over the next 3 months. So in Theory I can imagine that Amigo Loans would be better for me and it would be VERY unlikely someone who became my Guarantor would ever touch it.

I'm not definitely doing it btw, I am still considering all my options but I don't think people should dismiss the Guarantor aspect when it is really just a safety net and anyone with a brain would never apply if they definitely cannot afford it.

Thats because your mum obviously paid so they did not need to chase your granddad.
You have not indicated how much you want to borrow but indicate one way would be £200 for 3 months (£600) whereas the friendly Amigo loans will allow you to pay just £48 for 36 months (£1728). God bless em, obviously a charitable organisation.

The warnings on this site are very valid. If for any reason you cannot (or just do not) pay the loan, your guarantor is responsible.
If anybody is considering being a guarantor they would be far better advised to get the loan themselves at a much lower interest rate and give the money to their friend who will of course regularly pay them the monthly cost (except in many case they dont).

lollie182

They were estimated numbers and I wanted a bit extra as want to pay towards to our large winter gas bill and other bits as feel guilty my OH pays so much (including my college course) and I just clean up the flat (badly) around my job.

I think when using the calculators I picked £1250 so thats roughly £500 on top IF I didn't pay back early which I would as planning on getting a better job once pass my course and the school I work at are supporting me fully.

It's a shame Natwest think I can't pay back really, considering I'd have no other debts just them. My OH is looking at getting a loan to help me and pay off his small debts. Which just makes me feel more guilty :S

dealer_wins

You and your OH both have debts that you "need a loan" to pay off, and you wonder why NatWest wont grant a loan to you?

Apples2

We all know it is a stupid idea, but then we also think swapping £1,250 of our money for £600 of someone else's is pretty stupid as well.

I for one have no idea how that mind of yours is working to think this is a good plan.

History shows us on here the first sign of a financial disaster about to unfold, is when we read the phrase, "I can easily afford the repayments"

Please reconsider this plan, we're on your side really.

DCFC79

What Christmas debt is this ?

Christmas has always been 25th of December so could you not have planned for it if the money was for presents, food etc.