Why You Should Avoid Being A Guarantor

Why You Should Avoid Being A Guarantor

Why You Should Avoid Being A Guarantor

Standing as a guarantor is also a serious commitment not to be taken lightly. If someone asks you to be a guarantor, especially for the student loans, do think carefully about who you are guaranteeing for.

Students do listen up, if your friends are asking you to be their guarantor, please be mindful that if they are unable to repay their loan, the institution that they have loaned from can very well get you to pay up. This is a legal process.

Imagine that you have signed your name on the guarantor papers and forgotten about this. Several years later when you have forgotten about it, you are suddenly slapped with a letter demanding that you pay up. By that time, your so-called friend would have disappeared or the bank will not be calling you otherwise.

It could even be your best friend, but unless you are prepared to face a settlement which could be in the 5 figure range, please think about what you are getting yourself into.

It may seem noble and gratifying to be helpin your friend to get through college education, but you still have to take care for the worst scenario, however impossible it seems to you.

Furthermore, you have no idea what financial condition your friend is in. The worst of all is when the period of student loans kicks in and there are quite a few students looking for guarantors to stand for them.

If you are already in such a situation, and you want to get out, the process to remove yourself can be complicated. The student encumbered with the loan will have to find a replacement and all of you will have to meet up to formalize the paperwork to transfer the guarantorship to the replacement. Do not think about the friend you are troubling. If your parents have to bail you out, that is even more troublesome.

Check out Mahogany Sleigh Bed here.

POST COMMENT

All About The Different Types Of Pepper Spray The Worst Pick Up Lines Ever How Long You Understand Your Cookware The Angel of Independence Present Ideas for Toddlers 3 Must Know Things to Look for in a Marina Low Price for LightAir LAIF50FS UL Keep Your Head Al Gore Pushkar: The Gem of Rajasthan The Pocketbook 360: The Mini e-Reader that Packs a Maxi Punch How to Make the Best Lasagna Recipe Local Virtual Assistant Receives Entrepreneurial Recognition Avril Lavigne Excited That Rihanna Sampled Im With You