If the debtor defaults on their loan (or fails to meet contractual obligations), the lender will likely seize the collateral or security deposit that the debtor used to secure the deal. The guarantor then becomes responsible for paying the remainder of the debt. They may also be responsible for late fees and interest if the debtor consistently missed their payment due dates. Typically, a guarantor is someone with a stable income and an excellent credit history. The guarantor should have no problems paying back what’s owed to the lender if the debtor defaults. Unfortunately, the debtor’s default will likely negatively impact the guarantor’s credit score, which may also affect the guarantor’s ability to secure future loans.