Life has became hard this days.Atlest everybody is looking for loans.Some are accessing loans online that don’t require guarantors while some want big loans that need them to present guarantor(s). Being a guarantor is one of the serious risk you may do to yourself. By this I mean your assets and your savings are at risk.
Imagine being a guarantor to somebody and he/she disappears!! Here are quick safe tips of being a guarantor.
– Be Choosy.Always have it at your tip.Never append your signature to everybody.You can’t tell who is honest.In that case treat everyone as a ‘suspect’.
– Know your worth. Just like gambling,never guarantee someone money you are afraid to lose.
This also applies here,when someone requests you to be his/her guarantor to take a loan,just know how much money is he/she is demanding.From there weigh if you can foot the loan incase of a default.
How much are you in a position ‘willingly’ to lose incase of a default?
– Trust. To some level,guarantee anybody you trust.The role of a guarantor is to give an assuarance that the loan taken will be fully paid.
For that matter be sure who you guarantee.
– Consequences.So a default has been done,do you know the consequences and are you able to face them?
So before you agree to be a guaranor to someone who wants to secure a sacco loan,remember this safe secrets ideas of being a guarantor.