Amigo loans help

Yay.chris

I'm sorry if this is posted in the wrong place ,
Hi I'm 21 and when I first hit 18 I properly screwed up people selling me things in finance that sounded amazing but I never understood it all, things like buy now pay later and stuff like this long story short I was in a little bit of debt befor I knew it and had a bad credit rating so I was trying to pay everything back then my hours got cut and I didn't know what to do so I turned to pay day loans and befor I knew it things got bad so I resorted to a 5k loan from amigo with my mam as a guarantor but it turns out the 5k didn't clean it all so I have taken out a debt management plan with step change and all my creditors have agreed to it except amigo loans , step change keep telling me not to pay them and just tell them to ring step change but amigo loans are getting anger and I'm scared because with the debt management plan amigo is ony getting half the money they want and if they start taking it off my mother I'll get kicked out I can't afford to pay it because I got laid off from an apprenticeship so my worry is if I don't pay like step change say what will happen my mam isn't paying but can they do anything like I don't want to affect my mother

Gaz83

Please try and punctuate. It makes things easier to understand.

Do StepChange know your mum is a guarantor?

Yay.chris

Gaz83 wrote: »

Please try and punctuate. It makes things easier to understand.

Do StepChange know your mum is a guarantor?

Sorry my grammar sucks and yes step change are aware my mother is the guarantor but they said to tell my mam not to pay the rest of the money the amigo aren't getting each month

BillJones

Yay.chris wrote: »

Sorry my grammar sucks and yes step change are aware my mother is the guarantor but they said to tell my mam not to pay the rest of the money the amigo aren't getting each month

If she does this, it will likely be marked as a default on her credit file, which can have a major impact on her. You can't simply decide to do this to her on the say-so of step change without understanding what will follow, for her and you.

Pixie5740

Your mum is your guarantor for the Amigo loan, if you don't pay it then they will come after her for the money. Just come clean to your mum about not being able to repay the Amigo loan and that you are taking actions to sort out your finances. It's better she hears it from you than starts getting hounded on the phone by Amigo or them just debiting money from her account. The sooner you do it the less interest, fees and charges Amigo will be able to slap on the account.

Sure your mum will probably be p1$$ed off but it really is much better coming from you. At the moment you're thinking me, me, me, me. You need to grow some balls (or a steel vagina if you're female) and come clean.

BrassicWoman

It's not normal for an apprentice to be laid off - have you asked about this on the employment board? Apprentices have special protection.

fatbelly

Pixie5740 wrote: »

Your mum is your guarantor for the Amigo loan, if you don't pay it then they will come after her for the money.

That's what a guarantor loan is all about - you should find that your mum understood this when she signed. Talk to her.

Monkeyballs

Hi,

This is off the Amigo loans website under guarantor's responsibilities;

What is the guarantor's responsibility?

When you decide to be a guarantor it is really important that you fully understand what will be required from you. The responsibilities are:

1. If the borrower fails a payment it will then become your responsibility to pay on their behalf, this is why we run through an affordability calculation with you, we want to make sure you are able to take on this sort of commitment.

2. If the borrower was to enter into an IVA, goes Bankrupt, or pass away, then as guarantor you will become solely responsible for each monthly repayment until the loan is completed.

What we would ideally like to happen, is that if the borrower knows they will not be able to make the monthly payment that they let you know ASAP.

If you do need any more advice on whether or not you should be a guarantor then we recommend you ask yourself the following questions:

- Do you trust this person to make all the payments on time every month?

- Is the monthly repayment something they can afford?

- Are you comfortable with making these payments on their behalf should anything go wrong?

We don't want you to enter into anything that you may not fully understand or be comfortable with. Which is why we created a guarantor page, which will give potential guarantors a little bit more information about what it means to be a guarantor.

There are also numerous questions that have been answered on our Answer Centre that relate to guarantors and their responsibility, you might find some of them useful when it comes to making a decision.

I can't find anything specific to a DMP and it's not specifically referenced even in their T&C's which state;

Breaking the agreement

You will have broken this agreement if:

you don’t pay your monthly payment on time;
you break any of the other conditions of this agreement;
you made a statement which is false or misleading when you applied for this agreement;
a bankruptcy petition is presented against you;
you make arrangements with your creditors about how much you will pay them (this is sometimes known as an individual voluntary arrangement or IVA); or
the guarantor exercises a right to cancel the guarantee and indemnity.

By entering into a DMP you are still going to repay your debt (Am I right in thinking the balance you informed Amigo loans about includes interest?) just not under the same circumstances - it's worth chatting to SC about guarantor loans in general and maybe speaking to Amigo loans again ad making it clear it's a DMP not an IVA so they'll get their money back?

Bottom line is that a DMP is voluntary and you have a guarantor loan here so playing nice to start with is the way to go first IMO...

MB

Yay.chris

My mother already knows my situation but step change have said for her to not pay because it's my loan I just want to know if and what amigo loans can do that will affect my mother

Anondebtadvisor

Yes they can take legal action against her

Pixie5740

Yay.chris wrote: »

My mother already knows my situation but step change have said for her to not pay because it's my loan I just want to know if and what amigo loans can do that will affect my mother

Yes you took out the loan but your mother is also legally responsible for repaying it.

If neither of you repay the loan then you will both end up with an unsettled default on your credit files. Your credit is already in a bad state but if your mum had a good credit history then it's Good Night Vienna. This will stay on her credit file for 6 years and will be a real problem for her if she needs to apply for any credit in the near future.