#Everyoneneedsaplan When Guaranteeing a Loan

Trying to help out a family member or a dear friend by providing your personal guarantee (or offering your property as security) could be very costly at some point in the future, so before putting pen to paper and signing your life away make sure you consider the following:

• What is the difference between a guarantor and a co-borrower?
• Will the guarantee affect your own borrowing?
• Are you providing personal guarantee or your own property as security for the loan?

Make sure you get independent financial and legal advice about the guarantee BEFORE you commit.

I recently read this article from the ASIC moneysmart website, which provides a more in-depth look at the issues you should consider before providing a guarantee.