Guarantor Loan Debt Help & Advice
Get expert guarantor loan debt help today. Discover your options to reduce payments, deal with lenders, and protect your guarantor.
- Write off 75%* of unaffordable debt
- One lower monthly payment
- Stop creditor hassle and bailiffs
- Access mental well-being services
Your credit rating may be affected if you opt for a debt solution.
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Struggling With Guarantor Loan Repayments?
Taking out a guarantor loan often feels like the only option when other credit isn’t available. But when repayments start to build up, the pressure can be intense not just for you, but also for the person who agreed to guarantee the loan. Falling behind can affect both of your credit records and may put a strain on your relationship. That makes these debts feel more personal, and often harder to talk about.
If you’re worried about keeping up, this page will walk you through how guarantor loans work, what happens if payments are missed, and the debt solutions that may help ease the pressure. At PennyPlan, we give you calm, confidential guidance so you can move forward with a plan that works for you.
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*Mortgage debt can be included if you no longer own the property in question.
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Credit Rating may be affected. Fees apply, subject to individuals circumstances.
Reasons To Choose PennyPlan
- Stop all interest & charges
- Write off debt
- Access well-being services
- Reduce monthly payments
Protecting Yourself and Your Guarantor from Debt Pressure
With a guarantor loan, it isn’t just you on the line. If you fall behind, the lender can demand payment from your guarantor instead. That not only risks damaging their credit as well as yours, but it can also put real strain on your relationship.
You might find yourself making regular payments but barely reducing the balance, or relying on your guarantor more than you are comfortable with. Over time, what feels manageable can become a cycle of stress and pressure.
Debt solutions such as a Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA), or Debt Relief Order (DRO) can include guarantor loans. These options may help reduce or write off what you owe, though your guarantor can still be held responsible, which makes it important to get tailored advice before deciding your next step.
Debt Help Options for Guarantor Loans
Being tied into a guarantor loan can feel overwhelming, especially when repayments are putting pressure on both you and your guarantor. The good news is there are proven ways to reduce that pressure and start moving forward.
Our advisers can look at your full situation, explain what you owe, what you can realistically afford, and outline how best to protect your guarantor.
IVA
Individual Voluntary Arrangement
An Individual Voluntary Arrangement (IVA) combines debts into one affordable monthly payment, usually lasting 5 to 6 years. Interest is frozen, and depending on your circumstances, a portion of the balance may be written off at the end of the plan, giving you a structured path to becoming debt free.
DMP
Debt Management Plan
A Debt Management Plan (DMP) lets you consolidate debts into one manageable monthly payment. Interest and charges are often reduced or frozen, which makes it easier to stay on top of repayments. This approach provides flexibility and breathing space, while easing pressure on your guarantor.
DRO
Debt Relief Order
A Debt Relief Order (DRO) is designed for people with low income and minimal assets who cannot realistically repay what they owe. During the DRO period, repayments stop completely and creditors cannot chase you. Once it ends, qualifying debts are written off, giving you a clean financial start and peace of mind.
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We’ve helped people across the UK take control of their debts and get their lives back on track. Our trained advisers will assess your individual situation and guide you towards the best way to manage and resolve your finances.
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Get Help With Guarantor Loan Debt Today
If your guarantor loan is becoming unmanageable, you do not have to face the stress alone. At PennyPlan, we will take the time to understand your situation, explain your options clearly, and guide you through the steps that feel right for you.
Dealing with a debt that involves someone close to you can feel especially heavy, but support is available. Take the first step towards easing the pressure and finding a way forward, talk to our team today.
- One lower monthly payment
- Write off 75%* of unaffordable debt
- Freeze interest & charges
- Stop legal action including bailiffs
- Receive FREE well-being sessions
What Happens If You Can’t Pay Back a Guarantor Loan?
If you miss payments on a guarantor loan, the impact is not limited to you. The lender will usually add charges and interest, making the balance harder to clear. At the same time, they can contact your guarantor and demand payment from them instead.
This means both your credit record and your guarantor’s can be damaged. It can also put personal pressure on your relationship, which is often more stressful than the debt itself.
If the loan continues to go unpaid, the lender may pass it to a debt collection agency or begin legal action to recover the money. These steps can escalate quickly, making the situation more difficult for you and your guarantor.
The sooner you seek advice, the more options you will have to manage the debt and reduce the risk of things escalating further.
Tackle Your Debt And Your Mental Health In One Place
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Speak to our friendly debt specialists, who will explain all the options available to you.
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Now you have all the options available, you can make an informed decision that is right for you and your family.
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What Our Customers Say About Us
Maria
3 days ago
PennyPlan were extremely professional and genuinely caring, I am very happy that I made the call and now have a plan in place and peace of mind. From the first contact to the signing of the agreement it was straight forward and simple plus the staff really are exceptional in the way they listen and understand’ I couldn’t have asked for a better company.
Emily
4 days ago
For over a decade I have kept my money worries to my self away from friends and family one phone call with Leah and I had laid it all bare without a second thought nothing shocked her and nothing wasn’t sortable I’m forever grateful I stumbled across this company and no longer have to worry about money on my own. Highly recommend!!
Daniel
4 days ago
PennyPlan offered insightful, professional and empathetic support throughout my insolvency. Declan in particular was friendly, personable and knowledgeable, and a massive help throughout the process. They offer a no pressure service and allow you to make the best decision for yourself. I highly recommend these guys for anyone struggling with debt.
Mark
1 week ago
I was hesitant in applying for an IVA, But my mind was put at ease on the first call. The whole process was explained to me with complete care and understanding and I didn’t feel judged at all. Since being accepted for the IVA my mental health has improved so much and I now don’t worry about how I am going to put food on the table each week.
Guarantor Loan Debt FAQs
It can. Your liability will be covered by the IVA, but the guarantor remains legally responsible. That means the lender can still pursue them for repayment.
The lender will turn to your guarantor for payment. This can affect their credit record as well as your own, and may put strain on your relationship.
Yes. If you make payments on time, it can help your credit score. If you fall behind, it will show as negative marks on your file and could also damage your guarantor’s record if they are pursued.
Yes. A guarantor loan can be added to a DMP, which reduces your monthly payments. However, your guarantor can still be asked to cover any shortfall, so it’s important to be clear about the impact on them.
In most cases, no. Once the loan agreement has started, the guarantor is legally bound to it until the loan is fully repaid.
Speaking to a debt adviser is the best first step. Solutions such as a DMP, IVA, or DRO may help with your liability, but because of the guarantor’s responsibility it’s important to get tailored advice before making a decision.