Guarantor Loans in a DMP

LMJ10

Hi

can anyone help?

i have 2 x Guarantor loans that need to go into my DMP has anyone done this and do they anyway go after my guarnator no matter what? or do they accept the payment offered and not got after my guarantor?

sourcrates

Your guarentor will be pursued for the full outstanding balance.

The clue is in the name "guarentor", unfortunately they will be expected to pay if you don't.

National_Debtline

Hi LMJ10


Even if the lender accepts the reduced payments you personally offer them via your DMP, this doesn't restrict their right to pursue your guarantor to make up the difference, and that is precisely what I would expect them to do here, I'm afraid.


If possible, it would be good for you to forewarn your guarantor that they may begin to receive correspondence to this effect. Have they given any sort of bank details to this lender that would allow them to debit payments from the guarantor's account?


Dennis
@natdebtline

LMJ10

Yes they have my guarantor details

So really they don't help people in difficulties just cause more problems

Stepchange have said they'd prioritise the guarantor loans but I'm not sure I like this cuz I'm sure it would upset the other creditors. Big mistake lending from these!

[Deleted User]

LMJ10 wrote: »

Big mistake lending from these!

Even worse if you borrow from them.

LMJ10

Deleted_User wrote: »

Even worse if you borrow from them.

Yes that's what I meant

National_Debtline

LMJ10 wrote: »

Stepchange have said they'd prioritise the guarantor loans but I'm not sure I like this cuz I'm sure it would upset the other creditors.

That is a possibility, but it is worth at least exploring if trying to "protect" your guarantor is particularly important to you. I'm sure Stepchange would not have suggested this approach if they thought it would be a total non-starter.


Dennis
@natdebtline

sourcrates

To avoid any unpleasantness, it would be wise to treat the guarantor loans as essential payments, use money from the other debts if nessessary.

They are to all intents and purposes secured debts, so should be a priority.

Thrugelmir

LMJ10 wrote: »

Yes they have my guarantor details

So really they don't help people in difficulties just cause more problems

Without a guarantor they would never have of advanced the money to you.

Only you know your full personal circumstances, and whether it was the right decision.

MrsTinks

LMJ10 wrote: »

Yes they have my guarantor details

So really they don't help people in difficulties just cause more problems

Well... let's be fair, this is EXACTLY why they required you to have a guarantor. In the event you can not repay them then they had someone who could, thus partially reducing their risk of lending.

I abhor guarantor loans, but I understand the business model :cool:

Maybe if you share some more of the details and your situation we can give you some better advice?

It's possible you can prioritise the debt to the guarantor loans, but it may depend on what debts/money for repayment you have and maybe even who your creditors are.

It's no good shouting at the lender for potentially going to your guarantor when that was exactly the reason they lent the money and your guarantor would have been aware of this when they signed and were credit checked...

LMJ10

I'm well aware of why they lent to me and the guarantor process don't really need a lecture about them, was just asking the question if anyone has added one of these loans to a DMP