Financial counselling

What to do before agreeing

Before you agree to either borrow money on someone else’s behalf, or guarantee a loan, you should be aware of the consequences.

• It’s important to obtain legal advice to ensure you are aware of the legal consequences of becoming a guarantor before signing any documents.

• Do not sign documents you do not understand.

• Access Financial Counselling to be sure you will be able to cover the payments if required, without putting yourself into financial distress.

• Check if there are other loans, with lower interest rates and/or fees which may be more suitable.

• Decide if the loan is absolutely necessary – can the purchase be delayed until the family member can make the payments themselves.

• Be honest with your family member if you believe you cannot cover the debt or do not wish to proceed.

• If you think that you or someone you know could be the victim of elder abuse, including financial abuse, contact the Elder Abuse Prevention Unit.