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Loan Alternatives

Let me begin by telling you first and foremost that you should stay well away from loan sharks. Always make sure that any companies you use for finance are fully regulated and registered with the appropriate authorities such as the Office of Fair trading and the Information Comissioners Office.

Author: George Thistle

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Even when you use supposedly legitimate companies you will be certain that some will give you problems and find that they are not playing by the book or at times not even near to what the book dictates they should be doing.

Below I have outlined the first options I would always look at before moving forward;

A) Family and friends - can they help?
B) Debt solutions - Do you have debts you can't cope with? It may be worth speaking to Citizens Advice about the options
C) Guarantor Loans

The order you go through this list, really depends on your circumstances and it may make sense to seek independent financial advice before going down one particular road. Guarantor Loans, which are item 'C'; are the most similar to your standard unsecured loan in the fact that you can borrow up to £5000 over loan terms of up to 5 years and at reasonably competitive rates. The only addition required that differentiates them from normal loans is that you need to have a homeowner signed on the loan (i.e. the guarantor) to help add security that the lender will see all the loan repayments on time. This allows companies to lend in tough econommic times, like the ones we are currently facing.

Before signing on the dotted line for a guarantor loan, always, always please make sure that it is for you and discuss it carefully with your guarantor - after all, they will need to sign or agree to the finance as well, as they may need to step in should something bad happen down the line. Remember it is still a loan and you will be required to pay it back as per any agreement that you sign. A guarantor loan could also be seen as a way for family and friends to help if they haven't got the available and free to use cash to hand at the moment - Please make sure you can pay the money back in full and in line with the agreement and that your guarantor is aware that if you can't then he/she may have to take up repayments on your behalf.

About Author

George Thistle writes for Guarantor Loans Company and researches into the emerging alternative credit, sub prime and guarantor loans market.

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