About us

The Guarantee Foundation is a non-profit social welfare organization that helps prevent and solve financial and debt problems in Finnish households.

We operate nationwide and our services are free of charge.

We offer

advice by phone and chat
guarantees for consolidation loans provided by banks
miniloans for household purchases
tools for managing finances
training courses on financial management for volunteers and professionals in organisations and parishes.

In addition, we try to influence legislation and other structures so that they would support people’s efforts to manage their own finances and help them avoid severe debt problems.

The History of the Guarantee Foundation

The Guarantee Foundation was founded in 1990. During their 30 years of operation, the Foundation has helped approximately 135,000 people with debt problems. Around 15,000 people have been granted a consolidation loan guaranteed by the Guarantee Foundation. The loans add up to a total amount of about 180 million euros. Around 120,000 people have received advise on the debt helpline and in the chat.

The Guarantee Foundation was founded in 1990 to help special groups
The Foundation was founded on the initiative of prison chaplains. Their goal was to help released prisoners cope with the payment of their crime-related and other debts. The Foundation’s basic function was to provide guarantees for bank loans, so that people could consolidate their several different consumer credits and overdue bills into one single loan.
The funds for the guarantee capital came from the Common Responsibility Campaign organised in 1991 by the Evangelical Lutheran Church’s Kotimaanapu (“Charity in Finland”), and funds for the actual operations came from the Finnish Slot Machine Association.
In addition to prisoners who were about to be released, guarantees were also granted to substance abuse and mental health rehabilitees.
The A-Clinic Foundation, the Evangelical Lutheran parishes of Oulu, Tampere and Turku, the Church Council, the Criminal Sanctions Agency (former Probation Service), the Association of Finnish Diaconia Institutes, the Finnish Street Mission Association, the Church Resources Agency and Mental Health Finland are the Foundation’s founders and background organisations.
Growing operations and starting training and advice services from 1994 to 1995
At the end of the 1990s, a recession began in Finland. It was the worst economic crisis in the country’s history since the war. Over-indebtedness became a widespread phenomenon due to mass unemployment, high interest rates, compulsory home auctions and businesses going bankrupt, among other things. In 1993, the Act on the Adjustment of the Debts of a Private Individual entered into effect. The recession and new legislation increased the Guarantee Foundation’s responsibilities and grew their target groups.
Informative and educational responsibilities from 1994 to 2002
In 1994, the Ministry of Justice commissioned the Foundation to inform the public on the Act on the Adjustment of Debts and to train employees to be debt advisers, which was an entirely new profession. In 2002, these responsibilities were transferred to the Finnish Consumer Authority.
Guarantees for consolidation loans since 1995
The new Act on the Adjustment of Debts could only be applied to the most difficult debt problems. There was a need for a solution for lesser problems. With funding from the Slot Machine Association, a debt adjustment fund project was launched so that the Foundation could provide guarantees for consolidation loans provided by banks to more target groups than initially. Granting guarantees became a permanent part of the Foundation’s services in 1998.
Giving advice on the Debt Helpline since 1995
The Foundation launched a nationwide, free-of-charge and anonymous telephone service to give advice to people with debt problems. The helpline is still ongoing and has been accompanied by a web chat.
Social credit granting project from 1998 to 2002
The Guarantee Foundation participated in a nationwide experiment in social credit granting, representing organisations. The other participants were eight municipalities all over Finland. The credit granting experiment offered low-income households a loan for ordinary household purchases and basic health care expenses. In reality, however, people mostly applied for the credit to pay for overdue bills and consumer credit. The Foundation ended the social credit granting experiment in 2003, when an Act on social credit lending entered into force.
Debt settlement programme from 2002 to 2004
The state of Finland started a voluntary debt settlement programme together with banks in order to adjust debts that people had incurred during the recession. The Foundation’s responsibilities included informing the public on the settlement programme, giving expert advice and grant guarantees to adjust debts incurred during the recession.
Social credit granting project and Debt settlement programme from 1998 to 2004
Social credit granting project from 1998 to 2002
The Guarantee Foundation participated in a nationwide experiment in social credit granting, representing organisations. The other participants were eight municipalities all over Finland. The credit granting experiment offered low-income households a loan for ordinary household purchases and basic health care expenses. In reality, however, people mostly applied for the credit to pay for overdue bills and consumer credit. The Foundation ended the social credit granting experiment in 2003, when an Act on social credit lending entered into force.
Debt settlement programme from 2002 to 2004
The state of Finland started a voluntary debt settlement programme together with banks in order to adjust debts that people had incurred during the recession. The Foundation’s responsibilities included informing the public on the settlement programme, giving expert advice and grant guarantees to adjust debts incurred during the recession.
Projects to help special groups from 2007 to 2017
Omille jaloille (“On Your Own Two Feet”) from 2007 to 2010
“Omille jaloille” was a nationwide network project funded by the Slot Machine Association and managed by the Guarantee Foundation. The network consisted of eight social and health care organisations. The aim of the project was to help substance abuse and mental health rehabilitees with financial and debt problems, as well as people with a criminal background or gambling addiction. The Guarantee Foundation’s sub-project trained peer and other support persons to refer people with financial difficulties to the right places for help. The “Omille jaloille” project was the inspiration for the ongoing regional and network training course.
“TalousTsemppari” (“Finance Friend”).
Supporting convicts’ debt management from 2010 to 2011
The debt advice project for convicts sought new ways to settle and manage prisoners’ debts during their sentence. Based on this experience, a proposal for best practices in debt advice services was made, as well as a proposal for a new prevailing wage provision for the Imprisonment Act.
Talouspolku (“Financial Path”) from 2016 to 2017
The aim of the “Talouspolku” project was to discover new ways to better serve and reach the Guarantee Foundation’s original target groups. The project produced a report on the views and needs of the professionals who encounter people from special groups and deal with their financial matters. The information gathered in the project was used in the “TalousTsemppari” regional and network training.
Projects to help low-income and young people from 2013 to 2017
Miniloans for people on low incomes for purchases and expenses from 2013 to 2017
The aim of the Guarantee Foundation’s miniloan experiment from 2013 to 2017 was to develop a new form of social credit granting. The capital for the loans came from the Common Responsibility Campaign organised by the Evangelical Lutheran Church of Finland. The Slot Machine Association gave a donation to help organise the lending activities. After the project, the miniloan became a permanent part of the Foundation’s services. More information on the Guarantee Foundation’s miniloan.
Mun talous (“My Money”) from 2013 to 2017
“Mun talous” was a joint project where the Youth Housing Association, Nuorisosäätiö (“Youth Foundation”), the Finnish Federation of Settlement Houses and the Guarantee Foundation came together to promote young people’s financial literacy and prevent their financial problems. The project was funded by the Slot Machine Association. As part of the project, the Guarantee Foundation set up a web chat service alongside the telephone helpline.
More information here on our chat advice service.

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