Dealing with Debt 101 (and Guarantor Loans)

Screen Shot 2016-06-15 at 19.45.28It is very important to take a good control; of your finances to avoid getting into debts now and then. When you have accumulated large debts you are likely to suffer stress. You will never have peace, for example, every time you hear a knock at your door or when a phone rings you get constant worries. This can be harmful to your health and it is, therefore, advisable to avoid debt by every means possible.

It is important to understand the art of dealing with debts. This will keep you calm and on the safe side while repaying debts. You will be at peace and it’s finally going to be all fun. Grab some tips below:

  • Borrow money from family members and friend instead of other lending institutions. This will save you some stress while repaying the debt because family and friends are unlikely to force you to pay them back compared to lending companies who have laws and rights governing them. They can even have you arrested or take your properties. To avoid this, get a loan from a more secure place like from family and friends as well as credit unions in your locality.
  • Once you get a loan, never misuse the money in unintended ways. Always have a plan on how to use the loan to avoid wrong uses. Never be satisfied with the repayment periods and see as if the deadline is too far. Start dealing with your outstanding debts right away before it is too late.
  • Have a debt advisor. Yes, debt adviser will educate you on everything concerning debts. They will help you analyze your expenditures as well as your income. They will evaluate all this to give you a good repayment plan. You should equally share your repayments equally among the lender you owe to. Even if one is too harsh, the balance between repayments will be good.
  • One of best ways to deal with debt is by debt consolidation. It’s a technique whereby you merge all your available debts into one manageable amount and a reduced rate. This help you have a better repayment plan, you just need to deduct your expenses and the remaining amount to pay off the consolidated debt.
  • Get a guarantor loan to pay off loans from other lenders. If your time to repay your loan is due to can get a guarantor and get a guarantor loan here use the loan to pay off the due loan until you get back on your feet again. The loan is easier to get because you just need a guarantor who has a good credit history. When you clear the due loan you will maintain your credit score and you can even borrow again.

Aim at improving your credit score. This is vital because credit score determines whether you will get loans from lenders in future. As we said earlier the best thing to do in order to deal with loans is to try as much as possible to avoid them. When really necessary, you can use the above tips to deal with them.