Should You Take Loans For Another Person?

[Shaf]

This was a topic some friends were seriously debating last week. Apparently, a friend served as guarantor for someone's loan, and his details (including complete account details) were also taken.

When the person couldn't pay back on time due to some unavoidable issues, the payment for that month was deducted from the guarantor's account, which he only discovered when his friend wanted to pay directly and was made to know payment was done.

Does this have legal consequences?

I do know that once you serve as a guarantor anywhere and in any capacity, you can be held accountable like the person you are standing for. Be it a for legal purposes or for finances, you only do such if you are willing to bear the consequences of failure.

If you ever want to take a loan for another person or stand as a guarantor, be sure you have the capacity to pay, and that the person would be willing and able to lay his loans all the time.

 

[King bell]

When a loved one needs help financially, it can be tempting to take out a loan to help them out. However, it’s important to consider the implications of taking out a loan for someone else.

Before you agree to take a loan for another person, it’s important to ask yourself a few questions.

First of all, are you in a financially secure position to take out a loan? Taking out a loan can be risky, especially if you’re not in a good financial situation yourself. It’s important to make sure that you won’t be putting yourself in a difficult situation if you take out a loan.

It’s also important to consider whether you trust the person you’re taking the loan out for. After all, you’ll be responsible for repaying the loan, so you need to make sure that you trust the person to make payments. If you’re not sure that they’ll be able to make payments, it’s best to avoid taking out a loan.

Finally, it’s important to consider whether the person you’re taking the loan out for is taking responsibility for the loan. If they’re not taking responsibility, then it’s important to make sure that you’re not taking on the full burden of the loan yourself.

Taking out a loan for another person is a big decision, and it’s important to consider the implications before doing so. Make sure you’re in a financially secure position, that you trust the person, and that they’re taking responsibility for the loan. Only then should you consider taking out a loan for someone else.

 

[CALVINDOL]

Personally I see nothing wrong in taking loan from another individual and in fact not every individual in most situations are always financially equipped, one thing could lead to the other that may cause an individual to need money urgently and he or she is left with no other option to borrow money from another. Despite the urgency of being in need of money it is best for us to not rush into the act of borrowing money from another without asking reasonable questions concerning the money we are supposed to borrow. There have been many situations in which an individual pay more than he or she has received as debt to another as a result of him or her not asking the right questions possibly during the initial stage of borrowing the money.

Do you need a money borrowing process, you being the one, the money is being offered to should ask the lender if you are to pay interest or not. In a case where an interest is to be paid you must ask how much interest and on what proportion or rate it should be. Also being clear and notified on the dates and moments to repay back the loan can totally help you to get the money ready for repayment before time.