Hi...I am hoping someone can give me some advice regarding Amigo Loans.
I 'stupidly' went guarantor for a relative with Amigo loans about 2 years ago.
They paid their payments on time every month up until May 2018.
At this time, their partner lost their job and they could no longer afford the repayments.
Knowing this, they contacted Stepchange and went on a DMP straight away.
Amigo will not accept the payment that was offered by Stepchange and have started to chase me for the money which is expected.
I unfortunately am in the same situation as my husband lost his job last year and I went on a DMP 8 months ago.
We have both contacted Amigo and explained the situation but no matter what we offer it is not enough for them.
They have told us that due to our circumstances they can not tell us to make any additional payments as this would put is in financial strain, but the amount offered is not enough to keep the account on hold and that it would be passed to their litigation team on the 19th of this month to pursue a county court judgement.
We have repeatedly asked them what they would accept as a reasonable repayment as we would try and get help and support from relatives but they keep stating it is not enough to repay it in an acceptable time frame.
The debt stands at around £10.1k from a loan of £9.5k with £345 a month interest and a normal monthly payment of £375. We are offering them £175 between us.
We do not want this to go to court but unfortunately can not afford to pay any more. Can anyone give me advice on how to avoid legal proceedings or is this inevitable?