guarantor loans

happychick15

just looking for anybody's experience of these.....its just something im considering in future

barbarawright

According to a recent post, you're in £13,000 of debt. Are you planning to consolidate through a guarantor loan?

https://forums.moneysavingexpert.com/discussion/comment/55376983#Comment_55376983

Apples2

Fair assumption you aren't the sucker doing the guaranteeing.

Quick, offload your debt burden into some fool.

happychick15

i only asked for opinions of those who had experience of them...not some smart a*** comment...think i will take myself off somewhere else...this forum seems to be full of very judgemental ppl

fyi...it wouldnt be something id consider whilst i still have so much debt

barbarawright

happychick15 wrote: »

i only asked for opinions of those who had experience of them...not some smart a*** comment...think i will take myself off somewhere else...this forum seems to be full of very judgemental ppl

fyi...it wouldnt be something id consider whilst i still have so much debt

You asked for our opinion. I can speak for 99% of people on this forum when I say that guarantor loans are only used by people with bad credit who can't get a loan for themselves and the person guaranteeing rarely understands that they will be 100% responsible for the loan as soon as a payment is a day late. Look in this section of the forum for other threads on the subject and you will find dozens from people who guarenteed a loan and found themselves having to pay off the whole thing (as the lenders knew would happen). Plus the interest rates are twice as high as if the guarator had taken out the loan in the first place (and if they can't afford payments, they shouldn't be guaranteeing as they're going to end up paying anyway). They are a very good thing for the borrower who gets money he/she would never have been able to access otherwise and a terrible thing for the guarantor.

Is that non-judgmental enough for you? I make no comment on why you are planning further debt - that's your business. I do, however, make the asssumption (and you're welcome to correct me), that you're not planning to guarantee someone else's loan.

amyloofoo

barbarawright wrote: »

You asked for our opinion. I can speak for 99% of people on this forum when I say that guarantor loans are only used by people with bad credit who can't get a loan for themselves and the person guaranteeing rarely understands that they will be 100% responsible for the loan as soon as a payment is a day late. Look in this section of the forum for other threads on the subject and you will find dozens from people who guarenteed a loan and found themselves having to pay off the whole thing (as the lenders knew would happen). Plus the interest rates are twice as high as if the guarator had taken out the loan in the first place (and if they can't afford payments, they shouldn't be guaranteeing as they're going to end up paying anyway). They are a very good thing for the borrower who gets money he/she would never have been able to access otherwise and a terrible thing for the guarantor.

Is that non-judgmental enough for you? I make no comment on why you are planning further debt - that's your business. I do, however, make the asssumption (and you're welcome to correct me), that you're not planning to guarantee someone else's loan.

This is what you're going to hear from the vast majority of people on this forum. Guarantor loans are very rarely a good option, particularly for the people doing the guaranteeing and can lead to broken family relationships and people being left with others' debts. I have no doubt that many of those who take out these loans have no intention of defaulting, but the fact is that it happens with alarming regularity and the fact that the person borrowing can only get a loan with a guarantor is generally not a reassuring sign of their past financial behaviour. I'm not being judgemental, I previously considered a guarantor loan myself, but having seen the devastation they've caused for other people, it's not something I'd consider now - either as the borrower or the guarantor.

If you're looking for a way to manage your debts, please head over to the debt free wannabe board. Posters there are non-judgemental and full of helpful tips and advice for managing finances more effectively.

Apples2

happychick15 wrote: »

i only asked for opinions of those who had experience of them...not some smart a*** comment...think i will take myself off somewhere else...this forum seems to be full of very judgemental ppl

fyi...it wouldnt be something id consider whilst i still have so much debt

I would have been equally blunt if you were considering becoming a guarantor although from a different angle.
I would tell them straight that this "friend" is taking them for a fool.

You got yourself into your mess, don't try to offload it onto someone else to deal with by taking advantage of others good nature.

You'll get much more satisfaction and personal pride from digging your own way out of debt but maybe you don't care much for that.

27col

Yet another stroppy newbie who doesn't like the truth.

Peelerfart

I guess happychick is after a new username too.

dealer_wins

happychick15 wrote: »

think i will take myself off somewhere else

Please dont, MSE wont be the same without you!!

DCFC79

happychick15 wrote: »

i only asked for opinions of those who had experience of them...not some smart a*** comment...think i will take myself off somewhere else...this forum seems to be full of very judgemental ppl

fyi...it wouldnt be something id consider whilst i still have so much debt

I know its a waste of time but

1 dont even get anyone else involved with your debts

2 what if the 2 of have a falling out and you stop making the payments, your friend will be up the creek without a paddle

3 why not look at where your spending your money, lose the sky tv, lose the iphone on its expensive contract, cut the spending on clothes from expensive shops.

How can people get so far into debt without even looking at the current accounts/cc statements.