It is a good idea to think hard if you have been asked to be a guarantor for a guarantor loan. There are advantages and disadvantages to doing it and it is worth considering them. A few examples of the sorts of things that you should be considering are below.


  • It can be really nice to be able to help someone out. To know that you are helping someone borrow money so that they can buy something can be a great feeling. You might feel bad that you cannot give them the money that they need and so using a loan will be a way to help them out which will be an alternative.
  • If you can afford to give them the money, being a guarantor can help them to learn a bit more responsibility as they will have to repay it. If you give it to them, they will never learn that have to be responsible and return money that has been given to them. Hopefully they will start to learn how to budget and how to ensure they cover repayments which should halo them to get more responsible with their money and this could stop them having so much need to borrow in the future.
  • Try to establish beforehand that if they do miss a repayment that they have to repay you still at some point. This will help them to learn how to more responsible and realise that when they borrow money it needs to be repad.


  • It is important to make sure that you always have enough money available toc over the loan repayments just in case you need to make them. It can be wise to assume that you will have to pay every repayment and be prepared for that. Hopefully you will not have to pay this many, but if you are prepared for this, then you will not need to get stressed if you do need to hand some money over.
  • If you need the money then you may find that you struggle to manage if you have to keep paying it out for this loan. This could put you into a difficult situation, especially if you suddenly need the money and the person you are guarantor for is not managing to make their repayments.
  • Helping one person out could mean that you are in the position where you will not be able to help out anyone else. This means that if you get asked to help, then you may have to refuse your help.

It is therefore a good idea to have a good think about whether being a guarantor will work out for you. The advantage of being able to help someone can be really good and if it is someone that you really care about that you want to help, you might be tempted to do it and not think about the consequences. However, it is really important that you think about whether you feel you will be able to manage if you are helping someone out and you have to make a lot of repayments as you could end up not having a lot of money for yourself. You also need to think about how others might feel if they ask you to help them and they then find that you cannot help because you need to keep money by just in case you have to make those loan repayments. So, give it all some careful thought and make sure that you are making a decision that will work for you as well as for the person that you are helping out.

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