Feb 27 2022

Do Not Be A Guarantor

In financial affairs, we shall be foolish if we guarantee for other people. It is terrible. To be honest, we do not know our own future. How can we guarantee finances for others?
Once you are a guarantor, you put your destiny at the hands of other people. In the point of the law, if someone cannot pay what he owes, you have to pay his creditors for him.
If the amount is too big and you are not able to pay, you will be forced to declare bankruptcy yourself. Your whole life will have no more freedom.
In our life, our children, relatives, friends, will borrow money from the bank and need your guarantee. In such a case, you must reject their request, and instead just help them by cash from you. This way you can hold your own destiny for the future.
Even if your relative buys a house and needs your guarantee. You might think the risk low. But if he cannot pay the loan to bank, the house will be off. The difference of the loss will also be bad, and you have to bear the loss, even if the amount destroys your financial ability.