New Delhi, March 27 -- When deciding whether to help someone in need by becoming a guarantor, you should ensure that you never make such a decision based on emotion or in haste. This is because such a commitment can quietly put your retirement finances and peace of mind at risk.

What you must acknowledge is that once an individual retires, they enter a phase in which earnings typically stop. Survival then generally depends on fixed income sources such as pensions and fixed deposits.

That is why, when you act as a loan guarantor and the primary borrower delays or defaults on repayments, it can lead to serious financial problems for you. Let us explore this in more detail.

There can be several significant financial consequences if the bo...