Guarantor loan debts is destroying me

245

Comments

  • Your friend may have to pay your debt with an undertaking from you that you will pay her back when you are back on your feet.

    Can she afford to make these payments?
  • AlexLeigh
    AlexLeigh Posts: 25 Forumite
    Sorry to hear about your situation... When you took out the guarantor loan, your friend should have expected what she's agreeing to - it's not a great situation, but by signing an indemnity, your friend is agreeing to make payments when you can't.

    As you rightly point out, declaring bankruptcy or taking out an IVA would help with debts solely in your name, but as a guarantor, the debts are as much (if not more) in your friends name than they are yours.

    Maybe you can explain this to your friend and let her know that you will do your best to repay her when you can. She might be more than happy to help you get back on your feet and take repayment at a later date. If you don't speak to her and you miss a payment, the chances are that FLM or TFS will take the payment directly from her account. Sometimes they speak to the guarantor first, other times they don't.
  • Angie10
    Angie10 Posts: 16 Forumite
    No she carnt really and she put her trust in me, its my responsibility, i want to be debt free if i could have got a consoladation loan to bring my monthly repayments down that would have helped as things have got so bad that isnt an option. I will also be in neg equity once my house is sold my mortgage company ge money are charging me over 7% as im so far in arrears with them i carnt keep up. I can get rehoused which is most important for my children i have hardly any furnishure left to sell now and i sold my car to save money like i say its the other 2 loans i carnt get rid of! ive also tryed to post my income and exp on here but as im a new user it wont allow me, the top and bottom of it is my salary is 865 per month ive gone back to work my outgoings are 1125 and i need to start and pay childcare for my baby, would be nice to wake up and think its a dream!!!!
  • What about the children's father, does he give you anything towards their keep.

    AMD
    Debt Free!!!
  • Angie10 wrote: »
    ive also tryed to post my income and exp on here but as im a new user it wont allow me, the top and bottom of it is my salary is 865 per month ive gone back to work my outgoings are 1125

    To post the SOA, click on the "calculate" button and then choose the "MSE" option - the SOA will open in a new box and you can then copy & paste the info into your post. HTH

    SOAMSEformat.jpg

    Have you checked your benefits entitlement now you've returned to work? - you may be due some extra money.

    Unfortunately the others are right that your friend will be liable for the payments if you can't make them ..... you really need to let her know that you're having problems so she's at least got some warning of this.

    Please try the SOA again and we'll see if we can help.
    Grocery Challenge £211/£455 (01/01-31/03)
    2016 Sell: £125/£250
    £1,000 Emergency Fund Challenge #78 £3.96 / £1,000
    Vet Fund: £410.93 / £1,000
    Debt free & determined to stay that way!
  • gravitytolls
    gravitytolls Posts: 13,558 Forumite
    Oh Angie, I feel for you, you poor thing. Waking up every day with the same fear that you eventually fell asleep with is just hell.

    I can add nothing to the advice from others re. your finances, but I will just add that your health is important, and that you may well be neglecting it whilst in this situation. One of your children is very young, if you feel that you are struggling to cope with other aspects of your life, please do visit your Dr.

    If you are made bankrupt, is your friend still liable? How soon will you be made bankrupt?
    I ave a dodgy H, so sometimes I will sound dead common, on occasion dead stupid and rarely, pig ignorant. Sometimes I may be these things, but I will always blame it on my dodgy H.

    Sorry, I'm a bit of a grumble weed today, no offence intended ... well it might be, but I'll be sorry.
  • If she is made bankrupt her friend is still liable.

    It is a terrible mess, can you move in with family for a few months?
  • vax2002
    vax2002 Posts: 7,187 Forumite
    Could you not pay off the loans with a card, then go bankrupt ?
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Angie10
    Angie10 Posts: 16 Forumite
    I dont have any cards and couldnt even get one. No my ex husband wont pay anything towards his elest child he refuses to and has threatend with court action i need to get a grip but im not feeling that strong enough to go through that, i do get 100pound a month towards my second child my income includes tax credits i do think il get help with childcare costs. Ive never not worked though and the thought of not working would drive me even more crackers but i think in which way am i better off. I dont have any family support, My only option is to try and get a better paid job now rather than later.
  • Angie10
    Angie10 Posts: 16 Forumite
    Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 1
    Number of children in household......... 2
    Number of cars owned.................... 0
    Monthly Income Details

    Monthly income after tax................ 520
    Partners monthly income after tax....... 0
    Benefits................................ 280
    Other income............................ 100
    Total monthly income.................... 900

    Monthly Expense Details

    Mortgage................................ 467
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 68
    Electricity............................. 15
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 28
    Telephone (land line)................... 0
    Mobile phone............................ 15
    TV Licence.............................. 25
    Satellite/Cable TV...................... 0
    Internet Services....................... 10
    Groceries etc. ......................... 180
    Clothing................................ 20
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 25
    Childcare/nursery....................... 65
    Other child related expenses............ 36
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 12
    Contents insurance...................... 6
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 992


    Assets

    Cash.................................... 0
    House value (Gross)..................... 75000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 75000


    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 8500.....(467)......7.11
    Total secured & HP debts...... 8500......-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    flm............................4800......245.......0
    tfs............................5000......265.......0
    Total unsecured debts..........9800......510.......-


    Monthly Budget Summary

    Total monthly income.................... 900
    Expenses (including HP & secured debts). 992
    Available for debt repayments........... -92
    Monthly UNsecured debt repayments....... 510
    Amount short for making debt repayments. -602

    Personal Balance Sheet Summary
    Total assets (things you own)........... 75,000
    Total HP & Secured debt................. -8,500
    Total Unsecured debt.................... -9,800
    Net Assets.............................. 56,700

    Created using the SOA calculator at
    Reproduced on Moneysavingexpert with permission, using IE browser.
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