“I have debt with about five different companies and owe about 6 thousand pounds, plus i owe money to a bank thanks to my daughter, i do not work as i am registered disabled so i only have the money i get from my benifits i am divorced so have no husband to help me.
Please can you help.
My daughter asked me to stand guarantor for so she could get a bank loan, but unbeknown by me i was in fact the one getting the loan, i was not asked my income or anything to do with how i would pay the loan back, alli did was give my debit card for my bank details.
Now my daughter has said she wont be paying for the and the intrest is pilling on is it my debt or how can i get out of this mess?
I suffer with depression and now i feel like i want to take all my pills in one go, i cant eat or sleep with worry as £2ooo has now turned into £1700 nearly.
I understand your situation well, and it is unfortunate that by guaranteeing the loan, even if it was just that you unknowingly took out the loan, you will be held responsible for the debt.
You do have a couple of options, depending on your circumstance, so you can relax a bit and it can be sorted.
Firstly, were you able to service the loans/debt you had prior to the additional loan you obtained for your daughter? If not, then that loan just becomes part of the pool of debt.
Do all the debts total the 6K you mentioned or are there any other bills/debts?
Do you have any property?
In the UK if you are struggling with the loans/debts, one of your options is sending token payments to all your creditors, with a full disclosure of your income and expenditures. This would show what benefits you receive and what your monthly expenses are, and that you can only afford to send these token payments. Token payments are usually £1 to £5 to each account, each month. Your local CAB can assist you with this. This option can be for the long-term, but it is not a formal arrangement, and you may still receive some collection calls, and the stress that accompanies this. In addition, it can take a long time to pay the debts off at this rate.
Another option may be bankruptcy; but if your debts are less than 15K, and you have no property or surplus income, a Debt Relief Order may be more suitable. Either one of these forms of insolvency will relieve you of the debts, and if you only receive benefits, it will not change your eligibility for the benefits you receive.
I hope this helps.
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