A guarantor’s responsibility is to make the loan payments if the borrower doesn’t. That’s why we’ll always run through a budget plan before a loan is paid out.
Just to assure you, we don’t actually want to ask the guarantor to step in. If your loan falls behind, we’ll try to work with you directly to find a suitable arrangement to get everything back on track (and inform the guarantor of any arrangements we make with you).
We’ll only ever ask your guarantor to pay in line with their agreement and when it’s in both your best interests. This helps prevent any negative implications of the account remaining behind, such as the arrears increasing and the loan term extending.
Just so you know, if you were to enter into an IVA, go bankrupt, simply stop paying or pass away, then your guarantor would become solely responsible for each monthly payment until the loan is cleared. This is why your guarantor needs to be someone that:
- Trusts you to make all the payments on time every month
- Can afford the monthly payments
- Is comfortable making these payments on your behalf should something unexpected happen.
If someone’s got your back, Amigo can back you too.