What is a Guarantee?

Guarantee is a pledge by a third party or a person who will be held responsible if the one he protects defaults on his payments. For example your trying to get a loan from a creditor but you don't have the necessary collateral or you have a history which could jeopardize your chances then you can call up somebody to help you out. The help means that the person or company covering for you will pay the debt if you miss or don't pay the monthly charge. Also in other cases it can mean warranty, usually it’s a piece of paper which ensures the buyer for a specific time that the merchandise what he has bought will be repaired or changed free of charge in case of product failure.