If you continue to miss payments without an agreement, the lender will typically;
- Discuss the missing payment or payments with your guarantor.
- Your guarantor is equally as liable to make the payments as you are.
- If the payments are then not made by your guarantor either and the account remains in arrears, then the loan will be considered to have ‘defaulted’.
- It will then be reported to the credit reference agencies, meaning that you and your guarantor may have problems getting credit in the future.
Also see: Can the lender take legal action?
Money problems see: Where can I get advice if I am having money problems?
