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  • FIRST POST
    • Rutlandblue
    • By Rutlandblue 15th Apr 19, 6:56 PM
    • 20Posts
    • 2Thanks
    Rutlandblue
    Amigo loans
    • #1
    • 15th Apr 19, 6:56 PM
    Amigo loans 15th Apr 19 at 6:56 PM
    Can you give me any advice please, my friend is guarantor for her daughter for Amigo loans (Sharks) she did not realise how much interest was on this loan, took this out years ago and let her daughter keep topping it up. She is already paying off another debt of her. But this Amigo loan is bloody ridiculous, is there any way of getting out of this spiralling debt from Amigo. Please don't comment how stupid she is. Because I did not know about this till she told me and I know how stupid she's been, being a guarantor and letting her daughter top up. She is really struggling to pay this loan off, most of what she pays is lost with the interest on it. Would really appreciate some sensible advice. Thank you.
Page 1
    • DCFC79
    • By DCFC79 15th Apr 19, 7:04 PM
    • 34,031 Posts
    • 21,473 Thanks
    DCFC79
    • #2
    • 15th Apr 19, 7:04 PM
    • #2
    • 15th Apr 19, 7:04 PM
    Can you give me any advice please, my friend is guarantor for her daughter for Amigo loans (Sharks) she did not realise how much interest was on this loan, took this out years ago and let her daughter keep topping it up. She is already paying off another debt of her. But this Amigo loan is bloody ridiculous, is there any way of getting out of this spiralling debt from Amigo. Please don't comment how stupid she is. Because I did not know about this till she told me and I know how stupid she's been, being a guarantor and letting her daughter top up. She is really struggling to pay this loan off, most of what she pays is lost with the interest on it. Would really appreciate some sensible advice. Thank you.
    Originally posted by Rutlandblue
    Sensible advice is what you get here.

    A loan from a lender at a cheaper rate and pay off Amigo but if she is struggling so maybe wont work.

    Its possible, depends on her credit file and salary plus other factors like how much the other loan is for.

    Cutting bck on spending would be a start, can the daughter not cut back on her spending to help her mum.

    Why did she agree to be a guarantor ?
    IF Amigo can be paid off will another guarantor loan be taken out ?

    You say she wasnt aware of the interest on the loan, she signed the agreement, surely this was on the agreement.
    Last edited by DCFC79; 15-04-2019 at 8:28 PM.
    • zx81
    • By zx81 15th Apr 19, 7:13 PM
    • 21,736 Posts
    • 23,652 Thanks
    zx81
    • #3
    • 15th Apr 19, 7:13 PM
    • #3
    • 15th Apr 19, 7:13 PM
    Her options are to either refinance at a cheaper rate, or more likely, cut back and overpay as fast as she can.

    She also need to stop adding to the loan, obviously.
    • MallyGirl
    • By MallyGirl 15th Apr 19, 7:41 PM
    • 3,595 Posts
    • 8,951 Thanks
    MallyGirl
    • #4
    • 15th Apr 19, 7:41 PM
    • #4
    • 15th Apr 19, 7:41 PM
    Sadly the only option that incur less interest is to take out anew loan in her own name with a normal lender. If her credit history is good then she has a chance but they will take the current loan into account as they can't be sure she will pay the Amigo one off with the new one. This might make her struggle to meet modern affordability rules - depending on her circumstances.
    • jonesMUFCforever
    • By jonesMUFCforever 15th Apr 19, 10:23 PM
    • 25,736 Posts
    • 12,963 Thanks
    jonesMUFCforever
    • #5
    • 15th Apr 19, 10:23 PM
    • #5
    • 15th Apr 19, 10:23 PM
    On a legal note (and I don't know the answer) is the original guarantee still valid if the loan has been topped up - or would the guarantor need to agree to any new lending?
    What goes around - comes around
    give lots and you will always receive lots
    • cjv
    • By cjv 15th Apr 19, 11:37 PM
    • 462 Posts
    • 238 Thanks
    cjv
    • #6
    • 15th Apr 19, 11:37 PM
    • #6
    • 15th Apr 19, 11:37 PM
    If she is really struggling financially then she can approach the lender with her state of affairs and ask for help, alternatively contacting a debt charity for advice.

    She needs to be struggling though, as there is a difference in not wanting to pay high interest and not being able to.
    • mjm3346
    • By mjm3346 15th Apr 19, 11:56 PM
    • 40,041 Posts
    • 307,336 Thanks
    mjm3346
    • #7
    • 15th Apr 19, 11:56 PM
    • #7
    • 15th Apr 19, 11:56 PM
    If she is really struggling financially then she can approach the lender with her state of affairs and ask for help, alternatively contacting a debt charity for advice.

    She needs to be struggling though, as there is a difference in not wanting to pay high interest and not being able to.
    Originally posted by cjv
    Not sure proving she cannot pay would do any good as non-payment is what the guarantor is responsible for covering.

    (Assuming from the post the necessary approvals were obtained for the top-up "being a guarantor and letting her daughter top up")
    Internet goodness 26324
    • cjv
    • By cjv 16th Apr 19, 12:05 AM
    • 462 Posts
    • 238 Thanks
    cjv
    • #8
    • 16th Apr 19, 12:05 AM
    • #8
    • 16th Apr 19, 12:05 AM
    Not sure proving she cannot pay would do any good as non-payment is what the guarantor is responsible for covering.

    (Assuming from the post the necessary approvals were obtained for the top-up "being a guarantor and letting her daughter top up")
    Originally posted by mjm3346
    Sorry, I meant if both the daughter and guarantor can not pay
    • foxy-stoat
    • By foxy-stoat 16th Apr 19, 7:56 AM
    • 4,002 Posts
    • 2,323 Thanks
    foxy-stoat
    • #9
    • 16th Apr 19, 7:56 AM
    • #9
    • 16th Apr 19, 7:56 AM
    she did not realise how much interest was on this loan
    Originally posted by Rutlandblue
    Not possible as the guarantor would of seen all the paperwork at the start - maybe they didnt read the agreement.

    Cheaper rate finance is the answer - maybe money transfer credit cards and balance transfer cards.

    How much is the settlement figure?
    • Paul_DNAP
    • By Paul_DNAP 16th Apr 19, 8:38 AM
    • 457 Posts
    • 572 Thanks
    Paul_DNAP
    On a legal note (and I don't know the answer) is the original guarantee still valid if the loan has been topped up - or would the guarantor need to agree to any new lending?
    Originally posted by jonesMUFCforever

    What Amigo call a "top up" is a whole new loan application that is used in part to settle the old loan and the other part is new cash lent out. So a whole new application and therefore a new guarantee is made each time.
    (Although I could be wrong, I often am.)
    • Tarambor
    • By Tarambor 16th Apr 19, 2:15 PM
    • 4,876 Posts
    • 3,806 Thanks
    Tarambor
    i'd like to know why she is paying it off and not the daughter. If the daughter is like any of the sons/daughters we see on here from similar situations they'll be continuing to lead the life of Riley quite capable of paying the loan but not doing because it would mean they'd have to miss going out once a week or not having to have another new pair of shoes they don't need.

    If the daughter is capable of paying the loan then you as her mother's friend need to speak with the daughter and tear a right strip off her, pointing out how selfish she is and how much she is harming her mother and how much her mother is having to struggle because of her own selfishness and self centred attitude.
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