Guarantor Loans

What are Guarantor Loans For?

There are many people that may not really know what guarantor loans are. This is because they are fairly new loans and they are quite specialist. However, it is a good idea to know a bit about how they work so that if you want to borrow money, you can understand the differences between the different types of loans and choose the one that is most suited to you. Without having a good understanding of your options, it will be impossible to know

Is a Guarantor Loan Right for me?

There are many different types of loans available and it is a good idea to think hard, when you are choosing a loan, as to which one is right for you. There are different ones available to choose from and it is likely that you will know more about some than others. It is a good idea to have a good understanding of what the loan types are, how they work and then you will be able to match them up to your needs. The best one for you will vary depending on what you specific needs are. Therefore, it is a good idea to think about what you need first and then match it up.

How Much do you Need to Borrow?

It is important to have a very clear idea of how much money you need to borrow. Payday Loans will vary in the amount of money that they will allow you to borrow and so you will need to be aware of this and make sure that you choose a loan that will enable you to have the money that you need. It can often be tempting to borrow more than you actually need so that you can have some extra money to treat yourself or to spend on other things. However, this is not really a good idea. When we borrow money, we will pay for doing so and therefore we need to make sure that we do not borrow too much. It could mean that we will end up struggling to repay the loan which will be stressful for us as well. Of course, if you do not borrow enough, you could end up with a struggle to pay for the items that you need to buy. Therefore, you need to work it out very carefully.

How Much are you Prepared to Pay?

It is worth thinking about how much you are prepared to pay for the loan as well. Every loan will have a cost and that cost will vary depending on the lender, the loan, how long you borrow for and how much you borrow. It is a good idea to think about how much the cost might be and how much you are prepared to pay. Consider the item that you are buying with the loan and how much extra you will be prepared to pay for that item. Then you can use that figure as a guide as to how much you are prepared to pay for the loan.

How Much Can You Afford to Repay?

It is also very important to look at the repayments. You will find that loans will differ in how you repay. It is therefore really important to find out what the expectations will be. This means that you will need to look at the loan and find out how much you will be expected to repay and when. Then it is important for you to check your bank statement to work out whether you would normally be able to afford this or not. It is good to think about how many repayments you will be expected to make and for how long and that will enable you to be able calculate whether you will have enough both in the short and the long term. It is a good idea to try to think about whether you might have any expenses in the future that might make things more difficult for you.


Should I Extend my Overdraft Limit?

If you have an overdraft, then you may wonder at times, whether it is a good idea to extend the overdraft amount. There could be all sorts of reasons why you might feel like it would benefit you. There are advantages and disadvantages though and it is a good idea to be well aware of the drawbacks before you go ahead and try to extend.  


Overdrafts are really expensive and actually could be one of the most expensive ways to borrow money. The interest does vary between banks and it tends to range from 35% to 40% normally. This is pretty high and so it is good to think about whether you feel that an overdraft is worth this amount of money or not. If you have a bigger overdraft, you will be able to borrow more and this means that you will pay more interest if you do. It can be better to try to avoid going overdrawn and if you do need some extra money to have a look at alternative methods of borrowing which are cheaper.

Spending Temptation

It is worth remembering the cost and the fact that overdrafts are meant for emergency use only. Some people use them as if the money belongs to them and like the money is there for them to treat themselves with. Of course, it needs to be paid back and it will need to be repaid with that interest. So, you will need to think about whether you will use this extra overdraft money sensibly and whether you are likely to be tempted to just spend it and not think about the cost and the consequences or whether you will be sensible with it and only use it for emergency situations.

Credit Record

It may not look good on your credit record if you have this extra big overdraft, particularly if you borrow money frequently with it. The credit record could really help you to be able to secure other loans as well as insurance and rental property so it is something that you should take seriously. It may not be something that is important to you now but it could be something to consider for the future as this sort of thing is held on your records for a long period of time.

Of course, having the extra money will be really useful. You will be able to borrow more money if you need it and this could be extremely handy. If you fear that you may be in the situation where you need more money or you have been struggling recently, then it could be an option which you feel will be really handy. It is worth being very careful though as you need to bear in mind the fact that you will have to repay it. With an overdraft it will be repaid automatically when you get paid. This means that it is easy to forget about it. However, if your pay is low, when you do get paid, the overdraft could eat up most or all of the pay and then you will be in the position of having none of your own money to spend. This can be extremely tricky and so it can be wise to keep a really careful track of what you are spending and try not to use your overdraft. This could mean that extending it is not a good idea either and that you should perhaps be doing the opposite and thinking of reducing the overdraft. This could help you in the long run to more easily manage your debt.

Debit Cards

Should I Use a Credit Card or a Debit Card?

We often have a choice when we are spending money as to whether we should use a credit card or a debit card. We all know that using cards is easier than cash, more convenient and more secure. However, we may not know what the main differences between the two different types of cards.

How Credit and Debit Cards Differ

Although both cards look very similar and can usually be used in the same places there are differences as to where the money comes from. With a debit card, when you draw out cash or pay for things using a debit card, the money will come straight out of you bank account. Therefore, it is paid for and you do not have to worry about it, although if the money is not in the account you will go overdrawn. With a credit card, the money you spend is not paid for until you get a card statement. Then you will have a choice of repaying everything or paying a minimum amount and being charged interest for borrowing money. This means that with a credit card you will have a certain amount of time of interest free credit, between when you buy the item and when you have to pay the bill but you also have the option of continuing to owe the money.

Best Uses for Credit Cards

A credit card has security features on it which means that it is safer to use online as you are less likely to lose money when you use it. You will also find that if you buy something online and it does not arrive or is not what you ordered and you have no luck pursuing this with the seller, you will be able to get a refund through the insurance that is automatically placed on the card.

A credit card can be very good to use to get interest free credit on all purchases. However, it is really important to make sure that you repay the card before you have to pay any interest on the outstanding balance. This is because you will find that the once you leave it unpaid the interest can be really high and this will outweigh the benefits that you get of the interest free credit on the account.

If you know that there is no money in your current account and you are in danger of going overdrawn, then it can be useful to use a credit card. As there will be a delay until you have to repay it, it will hopefully give you enough time to find the money that you need to pay it before the bill comes in.

Best Uses for Debit Cards

If you need cash, then it is much better to draw it out on a debit card than a credit card. Most debit cards will allow you to draw out cash for free form most cash machines. However, with a credit card there is likely to be a fee and you will be charged interest right from when you draw out the money. The charges work differently to purchases online or from shops.

If you have outstanding debt on your credit card that you cannot afford to repay, then it is better not to use your credit card but to use the debit card instead. This is because you will start being charged interest on the credit card purchase. However, if you have an overdraft then using your debit card could be even more expensive as overdraft rates tend to be higher than credit card interest, but you will need to check this out to be sure.

Credit Cards

How to Find a Good Credit Card Company

There are lots of companies that offer credit cards and so it can be worth thinking about whether there are differences between them and how to choose which to use. It is a good idea to think about what is important to you and below is a guide to the types of things that you should be thinking about.

Cost of the Card

The cost of the card can be one of the most important things to certain types of credit card users. If you tend to repay the balance in full each month, then the interest on the card will be less relevant to you, because you will not be paying interest. However, if you leave some money outstanding each month then you will be paid interest on it and you will need to think about the cost of doing this. It may seem like a bit of a difference in interest rates will not make that much difference, but actually it could do. If you have the debt for a long time then the difference could really add up and paying less in interest will mean that it will be easier for you to be able to afford to repay the debt.

Credit Limit on the Card

It is good idea to think about how much credit you will get on the card. This can vary between the different card issuers and so it is a good idea to compare them and see what you might be able to get. You may think straight away that you will need to go for the one that allows you to borrow the most, but actually you will need to have a think about this. You might want one that offers you less so that you can restrict your spending a bit. This is because you may feel that you have a risk of overspending if you have access to lots of money. So have a think about what you think will be the best option for you.

Rewards Offered

Some credit cards will offer rewards to those using them. These will only be on certain cards and they will be usually based on how much the card is used. So, the more money that is spent on the card then the higher the reward. These can have a higher interest rate though and it is important to make sure that you check these and work out whether it really will pay off for you to have this sort of card. Some people will be encouraged to spend more with a card of this type too and this can mean that it will not be a good idea for them as they might justify spending on things they do not really need because of the miniscule rewards that they get as a result of it.

Reputation of the Lender

There are some people that really worry about whether the lender has a good reputation or not. They want to make sure that they are with a trusted lender and therefore want to check out details about them. This can be done by finding out more about them, reading reviews and speaking to people to find out about their experiences.

Customer Service

Customer service is important to a lot of people. They want to make sure that they will get a good response to any questions or queries that they have. They will want to make sure that they will be able to speak to someone or get a message or email response quickly. They will want a quick response form someone that is helpful and polite. It is easy to get in touch with the customer services department and find out how they respond so that you can decide if you feel they suit your requirements.

Credit Cards

Guide to Repaying a Credit Card

There are some of us that will have a credit card that has money owing on it and could like to repay it. However, it may seem rather daunting, especially if you owe a lot or you do not normally have a lot of money available to repay it. There are things that you can try though, which should allow you to be able to repay it more easily.

Stop Using it

The first thing you should do is to stop using the card. This will mean that you will not build up any more debt on it. Also make sure that as you start to pay off some of the card, that you don’t get tempted to use it again because there is less money owed. Try really hard not to use it so that it is much easier for you to clear the debt off it.

Ensure you Repay the Minimum

It is essential that you repay the minimum off the card. This is something that you can set up to be paid automatically. If you miss this payment then there will be even higher charges to pay and you do not want to have to pay these.

Look into Balance Transfers

It can be wise to make sure that you are not paying higher interest than necessary on your credit card. Find out how much the interest is on your card to start with and then you will be able to compare that to other cards. You will find a comparison website could help with this. If you find some that are cheaper then you will be able to investigate whether they will accept a balance transfer, which is involved in this and whether you will save money. Sometimes there are costs involved with balance transfers so you need to check all of this out. However, if you can transfer and reduce the interest that you are paying, it will mean that you will be able to have a bit of extra money available, to repay what you owe.

Make Sure You are not Overspending

It is a good idea to make sure that you are not spending more money than necessary on other things as well. Look into things like your insurance, utilities, contracts and the large regular amounts that you pay out and see whether you can switch to cheaper companies. This could save you a fair bit of money if you can. Also look at prices on everything else that you are buying and see whether you can get the items cheaper elsewhere. We often pay more than necessary for things we buy and so we could potentially save money if we cut down. It is also a good idea to think about whether we are getting good value for money. We may often think that the things that are dearer will be better quality and it is worth paying more for them. In some cases, this is right but it is not always true, so you should investigate this.

Try to Buy Less

It can also be a good idea to try to buy less things if you can. We all buy lots of things and although some of those will be necessary, we do often buy things which are not completely necessary or that we can wait to buy. This means that we can potentially cut back on this sort of spending and we will be able to use that money towards repaying the credit card. It is a good idea to ask yourself whether you really need the items that you are buying and then this could help you to cut back on unnecessary spending until you have repaid the credit card.

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