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  • FIRST POST
    Angie10
    Guarantor loan debts is destroying me
    • #1
    • 10th Apr 12, 8:21 AM
    Guarantor loan debts is destroying me 10th Apr 12 at 8:21 AM
    I Am currently in an unreal situation in which i carnt see any way out of to the point i just feel like i want to sleep and not wake up.

    I got made redundant 2 years ago everything from there has gone down hill my house is being re possesed im a single mum with a 3month old and a 10 year old child, ive been to the cab and my only option is bankruptcy but the problem is i had taken out 2 guarantor loans one with Flm and with Tfs they are charging me 435pound amonth if i dont pay they take it from my guarantor and they wont reason its killing me as there is no way i could put this on to my freind as she trusted in me but i carnt manage and feel so ashamed these people are like loan sharks they are awful companies i have been so stupid i feel as though im robbing peter to pay paul i took out these 2 stupid loans to try and keep my home which in the end is going now.
    Has anybody been in this situation? and seen light at the end of the tunnel?
Page 1
  • Bravehearted
    • #2
    • 10th Apr 12, 9:46 AM
    • #2
    • 10th Apr 12, 9:46 AM
    Really sorry about your situation.

    They will go after your friend with full force as you know so try not to default.

    In my book no one should ever be guaranteeing another persons loans - always ends one way.
    • lindann
    • By lindann 10th Apr 12, 9:54 AM
    • 272 Posts
    • 143 Thanks
    lindann
    • #3
    • 10th Apr 12, 9:54 AM
    • #3
    • 10th Apr 12, 9:54 AM
    I am really sorry about your problems, how terrible, I would come clean to your friend, what the situation is, so she can prepare for what may come, as it possible it will do... also get help from various debts thingy, plus it will cost you quite a bit of money to go bankrupt.... Hope people here will be able to advise you with bit more knowledge. Also you need to think of being rehoused, so shelter is a good area to explorer, l do hope it does not come to that, Good luck.. fingers cross for you
    • AMILLIONDOLLARS
    • By AMILLIONDOLLARS 10th Apr 12, 11:56 AM
    • 2,242 Posts
    • 2,545 Thanks
    AMILLIONDOLLARS
    • #4
    • 10th Apr 12, 11:56 AM
    • #4
    • 10th Apr 12, 11:56 AM
    Really sorry to hear about your troubles. First thing you MUST come clean to your friend, as other have told, they will go looking to her for the money.

    Is there anything you can sell, car, furniture, jewelry that could go towards these loans. what about cashing in any insurance policies. If its not too late what about renting out a room to help towards your bills. Please dont hide yourself away, go to your local CAB they will be able to help.

    Good Luck

    AMD
    MORTGAGE FREE 17/10/2013!!
    6500 - PAID OFF Barclays @ 0% interest free 24mths
  • Angie10
    • #5
    • 10th Apr 12, 5:48 PM
    • #5
    • 10th Apr 12, 5:48 PM
    Thanx for the advice, unfortunatly ive nothing to sell as ive sold must things to keep up the monthly repayments its like a living nightmare!!
  • DVardysShadow
    • #6
    • 10th Apr 12, 6:03 PM
    • #6
    • 10th Apr 12, 6:03 PM
    I suggest you go to the Statement of Affairs calculator http://www.makesenseofcards.co.uk/soacalc.html and fill that out. When you've filled it out, press calculate, then format for MSE and press highlight text in the popup window. Copy and paste everything, including the formatting codes into a post here, then let's see what we can make of your situation.
  • Angie10
    • #7
    • 10th Apr 12, 6:23 PM
    • #7
    • 10th Apr 12, 6:23 PM
    How do i do that?? il give it a go thanku for your advice.
  • Angie10
    • #8
    • 10th Apr 12, 6:29 PM
    • #8
    • 10th Apr 12, 6:29 PM
    Ive done my income and expendisre im in a minus i carnt afford to pay the mortgage because of the guarantor loans, I just want to not be afraid anymore and wake up without worry only to worry about my children. The thing is i have always worked every hour of every day the pay is just not enough and its so difficult now ive no childcare, i can cope with the fact my house is going only just but its the guarantor loans ive no escape to the point i dont no who i am anymore!
    • RAS
    • By RAS 10th Apr 12, 6:33 PM
    • 27,996 Posts
    • 48,414 Thanks
    RAS
    • #9
    • 10th Apr 12, 6:33 PM
    • #9
    • 10th Apr 12, 6:33 PM
    Hi

    rather than CAB (are you seeing a specialist debt advisor), check out CCCS, NDL or CAP.

    They all offer specialist debt help. Details here http://www.moneysavingexpert.com/loans/debt-help-plan#help
    The person who has not made a mistake, has made nothing
  • Angie10
    Yes ive tryed them but my friend is still liable for my debt if i go down that route its just not fair on her i wish that could be a solution more than anything but ive no way out of this mess. Its unfair but my debt i have to pay this somehow
    • AMILLIONDOLLARS
    • By AMILLIONDOLLARS 11th Apr 12, 9:55 AM
    • 2,242 Posts
    • 2,545 Thanks
    AMILLIONDOLLARS
    Ok, you'll lose your house, so that will be one less major monthly expense that you will not have. Will you be in negative equity, when the Building Society/Bank sell it? If you have to go into temporary housing your outgoings on this expenditure might be less. Could you use the savings made to pay your friend instead of leaving her to carry the can alone.

    Have you posted up your SOA so that we can see where other savings can be made.

    AMD
    MORTGAGE FREE 17/10/2013!!
    6500 - PAID OFF Barclays @ 0% interest free 24mths
  • glasgowsaver2011
    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
    Guarantor Loans
    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
    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!!!!
    • AMILLIONDOLLARS
    • By AMILLIONDOLLARS 11th Apr 12, 12:16 PM
    • 2,242 Posts
    • 2,545 Thanks
    AMILLIONDOLLARS
    What about the children's father, does he give you anything towards their keep.

    AMD
    MORTGAGE FREE 17/10/2013!!
    6500 - PAID OFF Barclays @ 0% interest free 24mths
    • rising from the ashes
    • By rising from the ashes 11th Apr 12, 12:23 PM
    • 12,321 Posts
    • 59,551 Thanks
    rising from the ashes
    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
    Originally posted by Angie10
    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



    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)
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    Debt free & determined to stay that way!
    • gravitytolls
    • By gravitytolls 11th Apr 12, 12:33 PM
    • 12,997 Posts
    • 23,207 Thanks
    gravitytolls
    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.
  • glasgowsaver2011
    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
    Could you not pay off the loans with a card, then go bankrupt ?
  • Angie10
    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.
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