Asked to be a guarantor - how to say no

LeafGreen

Kr94 wrote: »

Thank you for the advice all!
Had no idea it could become repayable in full - that I absolutely cannot afford.
If anything absolutely confirmed I'm not doing it now.
And now that's settled, off to the pub! :beer:

Definitely the right thing to do. So many past stories on here of loans to friends gone wrong. If they are a real good friend in genuine need then consider gifting them an amount with optional repayment but being guarantor to a large amount is a recipe for grief and stress.

dresdendave

As per every other reply, don't be a guarantor. If your friend takes offence they weren't a real friend in the first place.

Many people run into money issues due to unexpected events, if they are financially responsible they resolve them by (ideally) using savings, or a CC, authorised OD or a loan from a mainstream lender.

If they have to resort to a guarantor loan it suggests this is not a one off situation and they have a history of poor financial management (defaulting) in the past.

If you really want to help, sit down with them and review their outgoings and look for savings. Many people run out of money because they spend it on the wrong things, not because they don't have enough. Getting your friend to post an SOA on the DFW board will benefit him in the long run far more than bailing him out of his latest crisis.

By all means offer assistance, after all that's what friendship is about, just don't let your finances get mixed up with his.

Missus_Hyde

Cakeguts wrote: »

Never ever get involved with lending money to a friend or helping them to borrow money if you want to remain friends. If they are a real friend they will understand why you don't want to do this.

DCFC79 wrote: »

If going to lend money either do it as a gift or be prepared to lose it.

grahamgoo wrote: »

Definitely the right thing to do. So many past stories on here of loans to friends gone wrong. If they are a real good friend in genuine need then consider gifting them an amount with optional repayment but being guarantor to a large amount is a recipe for grief and stress.

Couldn’t agree more - never, ever be a guarantor for any loan for a friend, especially from a pay day lender.

If you really feel that you must help your friend with a loan, then the best thing is to gift them the money, with the proviso that they pay you back if and when they can afford it and don’t expect to get any repayment from them.

Then if they are able to repay you, you can be pleasantly surprised and your friendship will remain intact whatever the outcome. (I have actually done this myself and was paid back - much to my surprise! )

kuohu

Be like Zammo.

Just say No.

Ilona

Kr94 wrote: »

Thank you for the advice all!
Had no idea it could become repayable in full - that I absolutely cannot afford.
If anything absolutely confirmed I'm not doing it now.
And now that's settled, off to the pub! :beer:

Enjoy your pint or six, but be careful, do not cave in when you are intoxicated. :beer:

Ilona

fozmcfc

Surely a payday loan isn't over 24 months. It a month or possibly 3 months at a stretch, but not 24.

Sounds like it's more just a high interest loan from one of a handful of legit companies who offer these.

Whilst I still say NO absolutely don't do it, I would imagine that you could still pay £77 a month if your friend defaulted. Of course it will lead to you probably paying many months and a possible loss of friendship.

PixelPound

The replies are unanimous, yet the question is still asked, I suppose because of how these guarantor loans are marketed. Such "doing a friend a favour" or idea sold to the debtor as simply an easy way to get the loan if your credit file isn't up to it.

Guarantor loans are higher APR loans than the guarantor could get by themselves, because its a bad credit loan. If someone needs a guarantor then it is likely because they are at high risk of defaulting, so it is better getting the money yourself and giving it to them than been a guarantor. Strange thing is people don't like doing that as there is nothing to guarantee they will be paid but believe there is with a guarantor loan. Usually if the debtor defaults they come straight for the guarantor, by which time high interest rates and fees have inflated the cost a lot. :eek:

Soot2006

As above no no no

My friend was in this position and struggled to say no and ended up lying on the application to make sure he failed the guarantor check (incorrect address etc) ... So silly. Much easier to say no and making sure you don't put yourself in a silly position.

badmemory

To guarantee a loan generally means losing a friend & losing money too. Never do it unless you can afford to throw the money away.

ampersand

The best thing you can BOTH do is come here to mse.

Your friend needs to post an SOA.

You may need to, too.

Well done on coming for advice. I repeat, sending your friend here is even more important and something for which he should thank you even more.

Good luck.