Bad credit guarantor loans

Silverscreen_2

Hi, i'm currently looking to consolidate my debt as i have a couple of very high interest loans that i took out stupidly. My credit rating is "very poor" but i jave managed to convince my aunt to be a guarantor for a consolidation loan to help me rebuild my finances. Can anyone recommend a good company to go for that will accept me?
The only name i know of is Amigo loans but they are quite high interest too.

[Deleted User]

They all have high interest rates.

Please don't do this to your aunt. If she wants to help, ask her to her own loan, give you the money and you pay her back.

But not this.

CHR15

Many will frown that you would abuse your aunt in this way...

Why don't you ask your Aunt to apply for a loan herself and give you the cash to clear up your mess and repay her? At least she will be in control and it will save you hundreds if not thousands.

System

Do you hate your aunt? Ask her to borrow the money and repay her. She'll be effectively taking out the loan anyway as she is fully liable for it if you miss payments so you may as well borrow from her and pay a lot less interest.

In fact I would ask her to pay off the loans you currently have so she can be sure you're not digging yourself a deeper hole. Consolidation loans are usually how people start to get into trouble.

dresdendave

Assuming your aunt has the mental capacity to read,( the fact she's prepared to be a guarantor suggests otherwise), then get her to read the numerous posts on MSE about how guarantor loans usually turn out.


If she is still prepared to guarantee the loan then it's time to send for the men in white coats.


I notice "you convinced her" rather than "she offered" to be a guarantor. Please don't bully someone into getting caught up in your financial quagmire.


Please post an SOA on the DFW board for friendly advice on how to tackle your debt issues without creating divisions within your family.

Rainbowgirl84

Please don't borrow the money from your Aunt either. You dug the hole you are in, not your Aunt.

Fireflyaway

Borrowing more money won't get rid of the debt, its just moving it about. It might make you feel like you are doing something but its not a very effective way to deal with debt. Also involving family is really dodgy. Between you and your debtors its just business, but involving a family member could really backfire. What if something unforseen happened and you couldn't pay her? It could change things forever.
Work out what you have left over each month and pay the debt back. If your credit score is already bad and you don't mind a further dent, you could explain to your creditors you are in financial trouble and negotiate a repayment plan. They might even freeze the interest. Think about it carefully as it could impact your ability to get a mortgage, but if you don't need / want one, it could be a good option. The worst thing I ever did was take out a consolidation loan. It just increased the debt and made me feel more demotivated. If you have a couple of debts, deal with the smallest first and the feeling of achievement will push you to deal with the next and so on.

Silverscreen_2

Thanks for the advise. The plan was to replace the high interest loans with lower interest loans to reduce the interest i will be paying really.

Shakin_Steve

Silverscreen wrote: »

Thanks for the advise. The plan was to replace the high interest loans with lower interest loans to reduce the interest i will be paying really.

Any company that requires you to have a guarantor is only going to offer you a high interest rate. They are, by definition, sub prime lenders. Worry about building your credit rating once you have made some inroads into the debt you already have.
The advice you will get on this forum may seem tough, but reducing your current debt really is the best option.

ViolaLass

Silverscreen wrote: »

Thanks for the advise. The plan was to replace the high interest loans with lower interest loans to reduce the interest i will be paying really.

Hence IF your aunt goes for this, she should apply for the loan directly (not a guarantor loan) as she'll get a better rate.

Rainbowgirl84

!!!!!! people the Aunt will clearly end up paying.