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Guarantee (surety)
KrediteErwachsene
A person takes on liability for another person's loan. If the borrower doesn't pay, the guarantor has to step in.
With a guarantee (Bürgschaft) you are liable for someone else's loan. If the borrower can no longer pay the instalments, the guarantor has to step in and take over the debt.
Warning: a guarantee is one of the riskiest financial decisions of all. Experts advise: never sign a guarantee for friends or distant relatives. Even for close family members, only after careful consideration.
In Germany thousands of people get into financial difficulties every year because of guarantees – because the actual borrower could no longer pay.
Did you know? If parents voluntarily offer a rental guarantee in Germany, they are liable WITHOUT LIMIT – the legal cap of 3 months' net cold rent only applies if the landlord demands the guarantee.
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