EU set to ban Guarantor Loans?

Guarantor loans future uncertain

After 2 hurrendous years many people in the UK have relied upon guarantor loans to get an unsecured loan with bad credit. While guarantor loans are often shunned by those with good credit as being unethical they have enabled people with bad credit to get loans at more than a 10th of the cost of some payday loans. But now the future of guarantor loans is uncertain.

Countries get bad credit too

As of last week the ratings agency Moodys has been issuing warnings about downgrades to Ireland and Spain on top of the financial disaster that is Greece. This really means that just like those of us with bad credit it's going to cost those countries more money to borrow money. Now, you might ask, why doesn't the EU act as the guarantor to these countries and help them fix their bad credit score. Well, that is exactly what has happened. The IMF in conjunction with the European Central Bank funded by you and me has up until this point backed these highly indebted countries but now the messages coming out of the ECB are it simply cannot act as the guarantor for any more funds. So the IMF is looking very likely the only saviour of these countries. So it looks to use like the end of the line for guarantor loans from the EU.