So, you took a payday loan for an adult child who needed a car, a credit card or a student loan, and you have thoughts that it turned out to be not such a good idea. According to statistics, a payday loan, in most cases, is partially or fully paid by the guarantor.
Today, about 17% of Russians signed a loan agreement for an adult child. Most often, the purpose of a loan is to buy a car – a little more than half of all such contracts. About a quarter take a loan for personal needs and 16% – credit cards.
It is important to remember that when you apply for a payday loan, you do not just give a detailed description of the person – borrower, you undertake to pay the debt if he loses his job and cannot find another, or if he refuses to fulfill his obligations. In addition, we must not forget that if the ward has delayed payments, the score in your credit history will most likely be underestimated.
payday agreement will increase your statistical debt
If you plan to take out a loan in the near future, for example, to buy a car or housing, the existence of such an agreement will indicate to the bank that you have obligations under it. Accordingly, you may be denied the opening of a new loan until the old one closes.
It is possible to remove yourself from the contract as a guarantor
If a payday loan makes uniform payments and does not generate debts, you can try to exclude yourself from the contract. This can work with small loans, in case the loan is large, such as a car loan or a mortgage, you can only get rid of yourself if the main lender has refinanced the loan in his own name.
You can specify the conditions of cooperation in the contract in advance
For example, you can specify in the contract that the guarantor will respond only on the balance of the principal debt of the loan in case of default of the borrower. In this case, you can sue the borrower, if he does not pay the loan debt as you agreed. Then you will not be liable for any late payment or legal costs.
To get a loan without guarantors, easily and quickly.