My loan and now my worries

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  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Forget prison, there haven't been debtors prisons on these shores for a long time. Amigo can't get blood out a stone so if you haven't got the money and your guarantor (partner) hasn't got the money there's not a great deal Amigo can do to recover the funds. I think it would be worth you and your partner jointly filling in Step Change's Debt Remedy Tool to find out what options are available to you.

    https://m.stepchange.org/debt-remedy

    You can also contact Step Change if you just need someone to speak with about your debts. Step Change are a debt charity so their advice is free. National Debtline and CAP UK are also debt charities who can offer you free advice. Remember that every debt problem has a solution. Good luck.
  • Sncjw
    Sncjw Posts: 3,509 Forumite
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    Do you work at all? Seems like you don!!!8217;t. Get a job to help you.
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • worried_jim
    worried_jim Posts: 11,631 Forumite
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    Borrow £10k and pay back £26k. I need to set up a loan company.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
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    Nebulous2 wrote: »
    I don't think his mum is a party to the agreement. He's the borrower and his partner is the guarantor. His Mum was simply given some of the money.

    You're right, I misread.

    OP, you really need to get some paid work. Can you clarify why it's 'not that simple'?
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    worried_jim wrote: »
    Borrow £10k and pay back £26k. I need to set up a loan company.

    Its a horrifying amount to pay back, also good money for the lender.
  • Lioness_Twinkletoes
    Lioness_Twinkletoes Posts: 1,573 Forumite
    edited 17 May 2018 at 1:44PM
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    If your partner's car is not on finance, that can (and will be seized) if you do nothing. Because the loan payments are guaranteed by someone else, the debt is similar to a joint debt where both people are responsible for paying it back if one person can't. This can cause problems if you're unable to afford the loan as the guarantor becomes jointly responsible for the debt.

    So, if/when they take you to court, admit the debt and offer £200 per month. It is likely it will be accepted but you (and you partner) will have trashed credit ratings and County Couty Judgements.

    I echo the advice above and urge you to speak to StepChange
  • dawyldthing
    dawyldthing Posts: 3,438 Forumite
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    Do they need the car? As if not you might be better selling the car and using the tax/ mot/ insurance money saved towards it. Then see if you can cut back elsewhere to make up the shortfall. If your mum had half see if she can give £150 towards it per month then with the savings you'd get there
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
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    worried_jim wrote: »
    Borrow £10k and pay back £26k. I need to set up a loan company.

    Get back £13K if half of borrowers repay, and judging by the countless threads on here thats optimistic lol
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
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    How on earth has that loan got to £26k if the original amount borrowed was £10k? The interest rate must be huge. Get your finances straight to prove you cannot afford more than you have offered and hopefully a court will think this is reasonable. That amount is unlikely to be written off but they may sell it on.


    You wont go to jail but you may end up with a CCJ if they go to court. Assets like cars may be at risk if they are not on finance but if you are renting from the council this will be unaffected. A CCJ will stay on your file for 6 years so you will find it difficult to borrow. It might be worth contacting stepchange to see what they recommend.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    enthusiasticsaver wrote: »
    How on earth has that loan got to £26k if the original amount borrowed was £10k?

    It's an Amigo loan.
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