Amigo loans help

BillJones

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

Lodge a default on her credit file, and then pursue her for the debt, which can include passing it to a debt collection agency, and / or taking court action.

The debt is hers, too, not only yours. Amigo insisted on this, as they knew that you were not the sort of person who was likely to stick to the deal.

stalkah

The best option for her would be to try and get a loan in her name only with much better interest rates and pay off Amigo completely.

StepChange_James

Hello,

I'm a debt advisor at StepChange Debt Charity and just stumbled across this thread.

We wouldn't usually advise against a guarantor making payments towards a loan they were named on. So unless there's some sort of special circumstances I'd suggest getting in touch with us again to clarify.

I can't see why there'd be any harm in your mother making payments to make up the difference on the DMP payment. Assuming she can afford to, then this would be a way for her to maintain her credit rating.

As long as the payments are being made by your mother then it should be fine. The important thing would be to not try to pay the extra money yourself as this could leave you short for your essential living costs (as well as giving one creditor special treatment by paying them in full when others are being paid less).

I'd recommend giving us a call to clear things up.

Kind regards

James