Articles by admin

How to Find a Guarantor
How to Find a Guarantor

How to Find a Guarantor

There are now a series of guarantor loans available. These allow you to borrow money if you have a poor credit record. However, in order to allow you to have the loan you need to name a guarantor who will pay any loan repayments that you cannot manage. These cam allow you to buy things that you may not normally be able to and so can be very useful. However, you need to find a guarantor and this is a decision you need to make carefully. You need to think about the responsibilities of being a guarantor and pick a person that can live up to this. You also need to consider your relationship with the guarantor and how that might change.

Features of a good guarantor

A guarantor will need to have a good credit rating. The lender will be doing a credit check in order to find out what their credit rating is like. You will find that this will mean that the person will need a regular income and be paying for their bills and debts regularly. They will also need to not have lots of outstanding debt. They should be able to check their own credit rating before you apply for the loan, should you wish to check whether they are likely to get accepted. It can be wise to do this as they can make sure that the information on it is correct and they can get it altered if it is not. It will need to be someone that you know well, as you are unlikely to want to ask someone that you do not know that well to do this sort of favour for you.

Asking family

Asking family members can be a good idea. We tend to have closer ties with our family and they are more likely to help us as they have a bond with us which we are unlikely to have with friends. However, we will need to make sure that we have family members that have a good credit rating and that will be willing to help us out with a loan like this. You may need to look towards older members of the family but not old enough to be retired unless they have a significant retirement income.

You will need to think about whether you will be prepared to tell them about your financial situation and ask them for help. Some family members will be more sympathetic than others and more willing to help.

Asking friends

It can sometimes feel easier to ask friends for help with financial matters such as this. This is because they are unlikely to be judgemental as they are your friend. They may also be more likely to offer help because they want to be friendly to you. It may be that you have helped them out in the past and they want to repay the favour. Or it could be that they want to help you because they know that you would do the same for them in the future should they need it. The only problem with friends is that we tend to be similar to them and so this could mean that they have financial problems as well and may not be in a position where they can help out.

Potential problems

It is well worth thinking about what might happen if you cannot make a repayment on the loan and your guarantor has to do it for you. With a loan like this it is easy to assume that you will always be able to make the repayments and so there will be no problems. However, it is wise to assume the worst and consider what might happen if you do need help. This might sounds negative, but it is worth being prepared just in case although it is best to keep a positive attitude and hope that you can make the payments.

It can be wise to speak to your guarantor and ask them what they would expect would happen if they are asked to make a repayment on the loan. They might say that is a risk they took when signing up and they will pay it. They might say that they would expect the money to be repaid to them, by you, as soon as possible. They might say that they would want the money back at some point in time, when you have plenty to spare. These are all very different expectations and so it is good to be aware of what expectations they have and then discuss with them what your expectations were. Come up with an agreement so that you both know what will happen if they do have to make a payment or more than one. Think about what you can both afford and base it around that.

Top Tips to Avoid Going Overdrawn

Top Tips to Avoid Going Overdrawn

If you tend to go overdrawn a lot, then you will understand why it is best avoided. You get charged a lot of money in interest and fees and so it is a good idea to avoid it if you can. You may think that it is not very easy to do, if you regularly go overdrawn, but there are things that you can try which could help you. If you do not usually go overdrawn then this is great, but it could still be useful to make sure that you ae doing everything that you can do to avoid it in the future.

Keep a constant check on your balance

It is wise to always be aware of how much money you have available in your account. You will find that this will reduce the risk that you go overdrawn accidently. With such easy access to money form our accounts using debit cards and cash machines, it can be so easy to just withdraw more money than we have available without really noticing. Therefore if you always check, before making a transaction then this will help. Check between transactions as well in case you have any direct debits or standing orders which go out as well. It can be wise to change the dates of these so that they come out of your account on the day after you get paid so that you know that you will have the money available to pay for them. Then you will know what you have left for the other purchases that you need to make. You should be able to decide, based on what money you have left, what you can afford to buy and what you should wait to buy.

Try to put away some savings

If you can, it is really handy to have some savings to fall back on. This means that if you have an expensive month, you will be able to use the money from the account to save you having to use your overdraft instead. It can be difficult to save money, but if you are careful with what you are buying, you should be able to. Even if you are just saving a small amount at a time it will add up and could make a difference when you do get short of money. A good way to make sure that you remember to save is to put money into your savings account just after you get paid, so before you have the opportunity to spend it. Then you will be sure to have some money saved at just before you get paid again, you can add in the amount left in your account as well.

Cut down unnecessary spending

It is good to make sure that you think hard about everything that you are buying and be sure that you are not spending money unnecessarily. Think about whether what you are buying is necessary and if you can go without it. Do this for everything and this will mean that you will not spend more than you need to. Also look at thinks that you pay out for regularly such as mobile phone, insurance, television broadband and other contracts and subscriptions and see whether you can reduce the cost by switching to a cheaper provider. By doing this you may not even notice any difference in service, particularly if you are changing utility supplier or something like this and you could gain enough money each month to prevent you from going overdrawn. It can be quite fun comparing prices and seeing how much less you can spend. Once you have done it for a while it becomes an automatic habit and this can make it real easy and mean that you end up spending less all of the time.

Look for earning opportunities

It is a good idea to make sure that you are always aware of ways that you can be earning money. Whether it is picking up some extra hours at work, applying for a promotion or selling things you no longer need, it will all add up and help you out. You might be able to do a second job, perhaps working from home or doing evening or weekend work in a shop or bar. There are many opportunities and so if you have the time, you should be able to earn some more money. It can be fun doing some extra jobs and getting more money but you do need to be aware that unless you are selling your own preowned items, you will have to declare any income to the tax man so that you can pay the relevant amount of tax on it. Even if you earn below the tax limit you still need to make them aware of your earnings.