Being a guarantor means your liability for the loan is equal to the borrower’s. Essentially, there’s a chance you may need to make payments on behalf of the borrower at some stage on the loan, or be responsible for the entire loan if the borrower doesn’t pay.
Just to assure you, we don’t want that to happen. We understand the loan was taken out for the borrower and so we’d always rather solve any issues with them directly.
The only times we may look to you for payment is if we haven’t been able to resolve any arrears with the borrower and the account is at risk of falling further behind. We know it may not seem like it, but it’s in your own best interests to make sure those arrears aren’t able to build. In this situation, we’ll always try to contact you first, but if you have any concerns it’s always worth getting in touch directly.