subject: Guarantor Loans Help Those in Debt [print this page] It is not uncommon nowadays for people to have debt in one form or another. In fact, it is often considered the norm. Of course, the homeowners amongst us have the secured lending that enables them to have a roof over their heads, but unsecured debt is also rife in the country, particularly amongst tenants.
Whilst credit cards, store cards and payday loans may only be small time compared to their secured cousins, these debts can still add up, and 200 here and 500 there can creep into thousands of pounds in no time at all.
The more of this type of credit that a person has, the harder it can become to keep track of the repayments, not to mention the amount that is paid in interest. Whilst you think that if you chip away steadily at a credit card balance you will be debt free in no time at all, the reality is that the interest continues to grow, and while that shiny little card remains in your wallet, the temptation is always there to increase the balance by making a purchase. This means that you are never really sure when that item of credit will come to an end.
One option available to those whose unsecured debts have reached a couple of thousand is in the form of a guarantor loan. By consolidating all your credit into one monthly repayment, with a set monthly repayment schedule, you will know exactly when you will finish repaying your debt. Knowing that you will pay out the same amount each month also means that you can budget more effectively.
This option is particularly suited to tenants, who may be unable to obtain credit elsewhere. Guarantor loans work on the basis that the applicant adds a homeowner onto the application, in order to effectively guarantee the repayment of the loan. This means that guarantor loan lenders are able to be more flexible, and responsive with their lending.
Guarantor Loans Help Those in Debt
By: balit
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