Help ending a guarntor loan?

Question

I took out a guarantor loan over a year ago and have since lost my job and my guarantor was never able to make the payments to begin with. I have told them i have lost my job and am on benefits for the foreseeable future and both me and my guarantor have gone through a income and expenditure form showing we can not afford to make any payments yet they still send letters,texts and phonecallls demanding the payments and have even said on numerous occasions surely you could go without food for a month. Is there any way out of it?

? · Answer

Bankruptcy is designed for these cases.  Short of that, no.  When you signed up for the loan you made a legal contract saying you will pay the money back at such a rate for such an amount of time.  Since you can't live up to your end of the bargain, the loan company will do everything in it's power to try and get something back from you now.  It sounds like the debt may have been given to a collection agency.  Collection agencies only make money when you pay back the loan.  So it is in their interest to harass you as much as they legally can to make you pay it back, or at least some of it.  Different places have very different rules regarding collection agencies.  Do some research on the laws in your area.  You may be able to tell them to stop calling you.

Billybean · Answer

A loan is a loan.
The only way out of it is to pay it off.
The bank are quite likely to seize any assets that you or the guarantor have in order to do this.

? · Answer

nope - and I can't believe they would have accepted someone as a guarantee unless that person could basically qualify as the primary boroower

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Help ending a guarntor loan?

3 Answers