to not want to be a guarantor to a loan that DW's friend and husband want to take out.

(272 Posts)
BreakingDad77 Thu 07-Aug-14 12:11:38

I am aware they are not good with money (Im not amazing but are not anywhere near CCJ/default) and already have court collections on money they own. They need this to bridge the time till the DW friend goes back to work after maternity leave, supposedly they are short for rent and need 5-6k.

DW says we not at risk but I have told her that I believe that say they default then they would come after us and because we wouldn't be able to manage that extra then it would get put on our house.

I dont like the idea of money between friends like this.

YouTheCat Thu 07-Aug-14 12:14:00

If they default then you are liable to pay that 5-6k.

Don't do it.

Bourdic Thu 07-Aug-14 12:14:36

Run run as fast as you can from this - now!

Bourdic Thu 07-Aug-14 12:15:23

Give them the address of the CAB

FrankSaysNo Thu 07-Aug-14 12:15:28

Neither a borrower nor a lender be,
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
This above all: to thine own self be true,
And it must follow, as the night the day.

Guarantor means what it says, you guarantee to pay the loan if they default.

Don't touch it with a barge pole

HighwayDragon Thu 07-Aug-14 12:15:37

If they stop paying you are liable for the full amount. Do not do this, if anything you are enabling them, give them a debt advice helpline and leave it at that

DoJo Thu 07-Aug-14 12:16:13

Would you pay off a loan for them if they took it out without having a guarantor? Because that's the only reason I can think of to do this. I would never ask anyone other than my parents to do something like this, and even then it would only be because they would help me out if I defaulted anyway.

Unless you love them enough to give them £5k then don't do it.

Johnogroats Thu 07-Aug-14 12:17:19

Don't do this. It will end in tears. Expensive tears. They borrow £6k, don't pay it, there will be fees and interest....you could be liable for £10k or more.

MrsTittleMouse Thu 07-Aug-14 12:17:35

You are very much at risk. The company will only lend to them because they will be able to come after you for the £5-6k when if the friends default.

Don't do it!

CarmineRose1978 Thu 07-Aug-14 12:17:38

No chance! You would be responsible for the debt. Why can't she just go back to work earlier? It would be nice if everyone could afford the full year off, but many people can't.

HermioneWeasley Thu 07-Aug-14 12:17:48

Why can't she return to work sooner if they can't afford mat leave

tiggytape Thu 07-Aug-14 12:18:14

YANBU - the point of being a guarantor is that you are at risk if they don't pay. You are guaranteeing the loan which means you agree to pay if they don't.
These arrangements are fine for say a young person whose parents guarantee money because the young person has no credit history but does have the ability to pay and will pay. They aren't so great when one side has money troubles and might not pay plus the other side would find it hard to pay instead.

If there was no risk involved, the loan wouldn’t need guaranteeing.

Cornettoninja Thu 07-Aug-14 12:18:28

Nope, nope, nope.

I say this as someone fairly shit with money who wouldn't dream of asking anyone for even a fiver.

It's too much. If they need that much there are much bigger problems going on that they need to sort out. What exactly is going to happen when she finishes her maternity? Is she suddenly going to be earning thousands a month?

It's shit for them, but there's a kindness in not adding kindling to the fire they're clearly already in.

lanbro Thu 07-Aug-14 12:20:33

No way would I ask anyone but my parents to go guarantor for us, nor would I ever go guarantor for anyone. Leave well alone!

MrsTittleMouse Thu 07-Aug-14 12:21:00

Bourdic has a good point, there are loads of great websites around now as well with really good advice for getting out of debt and sorting out finances.

They could try:
www.moneysavingexpert.com
debtcamel.co.uk/
neither are going to charge them any money or try to sell them anything, and both are impartial and dedicated to helping people with money problems.

Bearbehind Thu 07-Aug-14 12:22:02

Absolutely no way.

Apart from anything else, what happens if she decides not to bother going back to work.

If they are in such financial difficulties why isn't she going to work sooner.

You are completely responsible for the loan when if they default- that's the whole point of a guarantor.

Fairenuff Thu 07-Aug-14 12:26:14

No, don't do it.

Iactuallydothinkso Thu 07-Aug-14 12:29:59

Best not. In my job I see this every day. Person defaults, ends up with ccj and enforcement action and so does the guarantor. In fact creditors are more likely to come after you as you're clearly more credit worthy (therefore likely to have more money) than the person asking to borrow it.

PumpkinPie2013 Thu 07-Aug-14 12:30:11

YANBU please don't do it!

Me and DH did for a (now ex) friend who borrowed a £1000. He was full of promises about keeping up with repayments etc.

He didn't and we ended up paying £900 out of our savings angry

"DW says we not at risk" - what exactly does she think a guarantor is if not to accept the risk? That's why the lender wants a guarantor - to pay back the loan if your friends default on it. And the lender (and you) believe your friedns are a risk, else they wouldn't insist on someone else being responsible for the loan if/when they can't pay it back.

Friendship and money are a bad combination - I don't think it's ever a good idea to lend (or guarantee) more than you could afford to give them.

susiedaisy Thu 07-Aug-14 12:33:34

No no no don't do it. It will end badly. Trust your instinct!

Leeds2 Thu 07-Aug-14 12:34:09

Don't do it.

ContentedSidewinder Thu 07-Aug-14 12:36:19

No way, just because you can doesn't mean you should.

And I say this as someone who has been tapped for money by family members on a regular basis, the odd £100 here and there, £1000 at one stage due to a remortgage and a whopping £25k to my parents. ALL of it was paid back, but I knew there was a risk.

There is a difference between the risk I took with my family, ie just losing the money if it was never paid back and risking a CCJ or bailiffs etc or something on my credit file.

So, no. Don't do it. They have form for defaulting and they will not consider your friendship when they default and they probably will.

WitchWay Thu 07-Aug-14 12:37:25

Bad idea

BlackeyedSusan Thu 07-Aug-14 12:38:36

DON'T DO IT!

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