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Give me some money – just like that!

Gruppe an Personen die ihre Hände übereinander halten
A friend of yours needs some money and wants to take out a loan at the bank. But to do that, she or he needs someone to stand surety, i.e. to guarantee that the loan will be repaid. Would you do that? Yes? Would you also agree to give him/her 100.000 euros as a present on the spot?
Guarantee a loan just like that
Standing surety is not something you do as a favour or because you are friends with someone. A suretyship contract is a legal instrument which binds you as guarantor until the loan has been completely repaid. By signing a loan agreement as surety, you accept the obligation to pay all the money which your friend may be unable or unwilling to pay. Regardless of whether the original debtor has suffered an accident or has become unable to pay for any other reason, you will have to foot the bill. You will have to pay even if you don’t have enough money and have to take out a loan yourself to repay your friend’s debt. So suretyship is far from being a mere formality. Signing as surety is a weighty matter. Once you have signed the suretyship contract, you have accepted all the payment obligations.

Standind surety – I want to do it

  1. 1. Read the suretyship contract carefully.You should only guarantee a loan if you could afford to give away the loan amount as a gift
  2. 2. Read the suretyship contract carefully.
  3. 3. Only sign documents you fully understand.
  4. 4. Give your signature only if you really want to. Do not give in to any pressure.
Give me some money – just like that!

What Dr. Dr. Money says

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