Jak has worked as a successful accountant for several years since graduating with a double major in finance and accounting. He is 28 years old and is looking to start his own accounting practice in Parap, Northern Territory. He has saved up a substantial amount of capital. However, he will still need to borrow $25,000 to finalise the arrangements. He has no assets and cannot obtain a loan without a guarantor. Jak consults his elderly parents, who grew up in Australia. He tells them he has a fantastic idea and that he needs their help. Jak's parents have always been very proud of him and think his plans are fantastic. Jak tells his parents he needs only $25,000 and this will be repaid within 6 months, after which time they would be under no further liability. Arrangements are made for a bank manager to visit Jak's parents and they both sign as guarantor for Jak. However, the agreement they sign is one for an infinite credit limit over an unlimited period. Jak's parents do not have $25,000 readily available to repay the loan and they fear to lose their family home. They seek your advice.