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  • FIRST POST
    • DazzFoster
    • By DazzFoster 14th May 18, 9:26 AM
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    DazzFoster
    My loan and now my worries
    • #1
    • 14th May 18, 9:26 AM
    My loan and now my worries 14th May 18 at 9:26 AM
    Over a year ago I got a loan from Amigo. My partner was the guantor. My mum had some of the money. I had no payments going out and was living with my mum.
    Fast forward two years. I am now living with my partner in a council rented flat with our 7 month daughter. So of course my money circumstances have changed significantly.
    We get roughly 1200 a month. 800 Universal credit and the rest is my partners maternity. She uses to pay for our daughters needs. Her car and her own debts. Out of the 800 UC we pay 412 on rent. And our left with 300 ish to get through the month. Now the amigo loan I got was 10,000 in the end and all together with interest it'll be about 26,000 I made payments up until I could. And then it got too much it was 395 a month. With my mum paying 200 aswell to help as she had money. Now I've done what I can to sort this. I've told them how my situation has changed. I've shown them proof. And I've said I can pay 200 a month. 100 me and 100 my mum. And they won't accept that. So are now saying they will take me to court. End of the day. No matter how far they take it it isn't going to magically make money appear. As I'm not a dad and living with my little family. I'm very worried about what could happen. Like without beating around the Bush. I hear alot about CCJ but my understanding of that is it puts you on a blacklist for 6 years? Is that simply it? The debt is written off? If I offer 200 to the court will they likely accept? If not then what is the worst case scenario in terms of. Jail. Our very few possessions and then our rented flat thank you in advance for your help
Page 1
    • iolanthe07
    • By iolanthe07 14th May 18, 9:57 AM
    • 5,011 Posts
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    iolanthe07
    • #2
    • 14th May 18, 9:57 AM
    • #2
    • 14th May 18, 9:57 AM
    If not then what is the worst case scenario in terms of. Jail.

    You can stop worrying about that. No one is going to jail. Contact Stepchange, Christians Against Poverty or your local Citizens Advice who will talk you though your options.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • zx81
    • By zx81 14th May 18, 9:58 AM
    • 16,803 Posts
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    zx81
    • #3
    • 14th May 18, 9:58 AM
    • #3
    • 14th May 18, 9:58 AM
    No, the debt doesn't get written off with a CCJ. Quite the opposite.

    The CCJ means the debt is still enforceable. It will stay on your files for 6 years.

    Either with or without the CCJ, pay what you can. They can't take more than you have. You won't go to jail.
    • forgotmyname
    • By forgotmyname 14th May 18, 10:25 AM
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    forgotmyname
    • #4
    • 14th May 18, 10:25 AM
    • #4
    • 14th May 18, 10:25 AM
    If your partner is the guarantor then they can take her money and her car etc.

    If they take you or your partner to court the bills just get bigger.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

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    • Candyapple
    • By Candyapple 14th May 18, 12:35 PM
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    Candyapple
    • #5
    • 14th May 18, 12:35 PM
    • #5
    • 14th May 18, 12:35 PM
    What did you spend the 10k on?

    How much of the 10k did you give to your mum?

    Do you have a job? I can't see your salary in the amounts you gave.

    What happens when your partner's maternity leave ends, will she be going back to work?

    Whatever you do, don't stick your head in the sand. If you've ever watched an episode of 'Can't Pay We'll Take it Away' the last thing you want is bailiffs turning up on your doorstep and not to mention once it goes to court, thousands of pounds will be added on top of the debt.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • ViolaLass
    • By ViolaLass 14th May 18, 12:41 PM
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    ViolaLass
    • #6
    • 14th May 18, 12:41 PM
    • #6
    • 14th May 18, 12:41 PM
    Get a job, any job, urgently.
    • DazzFoster
    • By DazzFoster 14th May 18, 1:20 PM
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    DazzFoster
    • #7
    • 14th May 18, 1:20 PM
    • #7
    • 14th May 18, 1:20 PM
    Is it really that bad. I wish it was that simple. A good chance the court will deny 200 a month payment?
    • zx81
    • By zx81 14th May 18, 1:23 PM
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    zx81
    • #8
    • 14th May 18, 1:23 PM
    • #8
    • 14th May 18, 1:23 PM
    If 200 is all you can pay, then 200 is all you can pay. Your guarantor will need to pay whatever they can pay.

    If it's felt you can pay more and you're just trying to get way with less, the creditor may push for more.
    • John-K
    • By John-K 14th May 18, 7:34 PM
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    John-K
    • #9
    • 14th May 18, 7:34 PM
    • #9
    • 14th May 18, 7:34 PM
    As above, you need to get a job. There are plenty around at the moment, we!!!8217;ve near record low unemployment.

    It doesn!!!8217;t matter what it is, anything on minimum wage for 40 hours a week will do for now.
    • ViolaLass
    • By ViolaLass 14th May 18, 7:40 PM
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    ViolaLass
    Could your mum afford more? If so, surely they'll try to get it.
    • Nebulous2
    • By Nebulous2 15th May 18, 5:31 AM
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    Nebulous2
    Could your mum afford more? If so, surely they'll try to get it.
    Originally posted by ViolaLass
    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.
    • Pixie5740
    • By Pixie5740 15th May 18, 6:34 AM
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    Pixie5740
    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
    • By Sncjw 15th May 18, 6:55 AM
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    Sncjw
    Do you work at all? Seems like you don!!!8217;t. Get a job to help you.
    • worried jim
    • By worried jim 15th May 18, 7:02 AM
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    worried jim
    Borrow 10k and pay back 26k. I need to set up a loan company.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
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    • ViolaLass
    • By ViolaLass 15th May 18, 9:19 AM
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    ViolaLass
    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.
    Originally posted by Nebulous2
    You're right, I misread.

    OP, you really need to get some paid work. Can you clarify why it's 'not that simple'?
    • DCFC79
    • By DCFC79 15th May 18, 9:38 AM
    • 31,606 Posts
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    DCFC79
    Borrow 10k and pay back 26k. I need to set up a loan company.
    Originally posted by worried jim
    Its a horrifying amount to pay back, also good money for the lender.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Lioness Twinkletoes
    • By Lioness Twinkletoes 17th May 18, 11:05 AM
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    Lioness Twinkletoes
    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
    Last edited by Lioness Twinkletoes; 17-05-2018 at 1:44 PM.
    • dawyldthing
    • By dawyldthing 17th May 18, 11:13 AM
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    dawyldthing
    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
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    • dealer wins
    • By dealer wins 17th May 18, 12:28 PM
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    dealer wins
    Borrow 10k and pay back 26k. I need to set up a loan company.
    Originally posted by worried jim
    Get back 13K if half of borrowers repay, and judging by the countless threads on here thats optimistic lol
    Choose life
    • enthusiasticsaver
    • By enthusiasticsaver 21st May 18, 10:00 PM
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    enthusiasticsaver
    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.
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    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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