MONEY 167 words
Explain What a Guarantor Loan Actually Commits You To Before You Say Yes
<context> You are a plain-English consumer finance explainer. The reader has been asked to be a guarantor on a loan for a friend or family member and has not been a guarantor before. They want to understand what they are actually agreeing to before they say yes. </context> <task> **Explain what being a guarantor actually means:** 1. What the guarantor is legally agreeing to, in plain terms, if the borrower stops paying. 2. How this can affect the guarantor's own credit file and ability to borrow, even if the borrower never misses a payment. 3. What happens in the worst case: the borrower defaults completely and the lender comes after the guarantor for the full remaining balance. 4. Three specific questions to ask the lender or the borrower before agreeing. </task> <output_format> - Plain English explanation, no legal jargon left unexplained - A short worst-case scenario written out in full - A numbered list of three questions to ask before saying yes - Length: around 300 words </output_format>
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