Bad credit guarantor loans

SparklesJD

If you really want a consolidation, you could try a credit union - go to https://www.findyourcreditunion.co.uk for ones that cover your area or sector.

CU rates are limited by regulation (even their maximum is lower than Amigo's representative rate) and they will look at your whole situation properly - so be upfront with your circumstances. They're often more likely to lend than a traditional lender.

Guarantor loans are very expensive and often don't end well...

ViolaLass

csgohan4 wrote: »

how can it go well? Guarantor loans are high interest themselves, OP is paying a loan with another loan, albeit not market leading low interest

The situations I know about have involved people taking out loans/using savings and lending that to the person in debt. No guarantor loans.

By going well, I mean that every penny was paid back and on time.

csgohan4

ViolaLass wrote: »

The situations I know about have involved people taking out loans/using savings and lending that to the person in debt. No guarantor loans.

By going well, I mean that every penny was paid back and on time.

OP situation is different, this is with a guarantor loan where the OP convinced the aunt to participate. Very different situations.

StopIt

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.

Wrong.


I guess you're in knee deep with Pay Day loans?


They may have a higher APR, but consolidation loans like this are for a longer term. Lower APR over longer time = more interest paid. These companies aren't stupid, but they hope that you are.


Don't do this. Go to the DFW boards right now and get out of the debt spiral. This will only end in default and dragging your aunt into your debt crisis. You need to address why you're in debt, not kick the can along.

ViolaLass

csgohan4 wrote: »

OP situation is different, this is with a guarantor loan where the OP convinced the aunt to participate. Very different situations.

Not different, if the aunt were to take out her own loan in her name. Exactly the same, in fact.

pcman1985

ViolaLass wrote: »

Not different, if the aunt were to take out her own loan in her name. Exactly the same, in fact.

But, if the aunt applied for a loan in her name, subject to affordability and credit checks, the loan would be at a much lower APR than that of guarantor loans, thus saving the OP some money.

In my opinion, all these guarantor loans should be banned.
I would never act as guarantor for anybody, and I would never ask someone to be a guarantor for me.

ViolaLass

pcman1985 wrote: »

But, if the aunt applied for a loan in her name, subject to affordability and credit checks, the loan would be at a much lower APR than that of guarantor loans, thus saving the OP some money.

In my opinion, all these guarantor loans should be banned.
I would never act as guarantor for anybody, and I would never ask someone to be a guarantor for me.

Indeed. I never recommended that anyone take out a guarantor loan. I commented that lending money to family and friends can work (and doesn't always).

Read my posts.