guarantor loan HELP lowie1978

#1
So i took out a guarantor loan out in April 2014 as i needed the money and couldn't get a loan elsewhere , my mother stood guarantor which wasn't an issue . The loan amount was 6000 and repayments where £248 a month over 48 months (yes i no the apr was high but at the time i had no option) Any way i have made continuous payments till Nov 2016 . my father had fallen ill with stage 4 lung cancer so i was helping my mother out will the bills and asked the loan company if i could reduce my payments all they agreed too was a 3 month breathing space of payments of £150 a month . that breathing space is up now and now they want full monthly payments to resume and some more off arrears . this still isn't doable mine and my guarantors financial situation are no better ... now we are both aware that if i dont make full payments there go after my guarantor for the money .. what i want to no is what can happen if we both just cant afford the re payments whats the worse the company can do . is there anything we can do i have paid over 8000 with respect to this loan and apparently still owe 4000. any help advice would be much appreciated

#2
If neither of you can pay, both of you r credit files will be marked with a default and they will then pursue means of getting the debt paid.



This may be anything from arranging a payment plan with you, to applying for a CCJ.



Talk to them.

#3
yeah im talking to them im not shying away from it and im been straight with them. .



is there no way to freeze interest or anything like that

#6
It depends how they want to proceed if they believe neither of you can pay.



What are the terms of the guarantor contract?



Does your mother own her own home - was that a requirement of the guarantor?

#7



no they have said they wont as there is another person liable
Originally posted by lowie1978


Do they know she will also struggle to make the payments? Unless they can do something like put a charge on her house if she owns one.



Next time if desperate for money ask your mum to borrow the money at a sensible rate and pay her back rather than crippling your finances with crazy APR guarantor loans

#8
wouldnt of been an issue and i would of paid the full amount monthly without an issue .. wasnt expecting my father to get cancer and come out of work .. so its been all hands on deck so to speak

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