Being a bankrupt is not something one would dream about as a child however sometimes it really is the only way out of a debt hole. However, before you reach for the ultimate solution to your indebtedness there are a few things you need to look at first:
1) The IVA
2) Debt Forgiveness
3) Debt Restructuring
These three options can really help you eliminate your debt without filing for bankruptcy.
I think we’ve done a pretty good job of explaining what guarantor loans are so now it makes sense to talk about a few guarantor loans lenders. One the best exponents of guarantor loans are FLM Quick Loans. They have fused guarantor loans with payday loans enabling them to charge a much lower amount of interest than the normal payday lenders. Of course this is achieved through adding a guarantor into the loan agreement and reducing the risk to the lender.
FLM Quick Loans Requirements
The requirements are actually slightly more relaxed than most guarantor loans but basically you must be over 18 and
You must be 18 years of age
You must be a UK resident
You cannot be currently bankrupt or on an IVA
You must have a valid debit or credit card
You must have a valid email address and mobile phone number
You must able to provide a suitable guarantor
The guarantor does NOT need to be a homeowner but they do need to earn over £800 per month, and have fair credit.
The big thing about FLM Quick loans is this:
Borrow £100 for 31 days:
– Total Charge for Credit is £9.74
– Total Amount Repayable is £109.74
– Interest Rate is 0.314% per day
– Representative APR is 199%
No payday lender comes anywhere near this cost. With them you are looking at an APR between 1000% and 3000%. They are just no competition which is why FLM Quick Loans have been growing at an incredible pace over the last year.
Now piece of information about a guarantor loan lender would be complete without talking about the charges you may have to suffer should you miss payments as so on. The good news is it’s pretty simple to understand what happens:
There is no early settlement fee from FLM Quick Loans, which means you really do only pay the interest on what you have borrowed for that period in time.
And here are the basic fees for late payment:
3 days late on your payment – £20.00
4 days late on your payment – £7.00
11 days late on your payment – £7.00
40 days late on your payment – £20.00
Guarantor loans lenders
There are only a few guarantor loans lenders in the UK and by and large they a very similar set of requirements but please only use this list as a guide rather than the definite list for specific companies.
Borrower must be over 18.
Borrower must not be on an IVA or a bankrupt.
Borrower must have a bank account with a debit card facility.
Guarantor must be over 18.
Guarantor must have good credit rating and not be on an IVA or bankrupt.
Some guarantor loans will require the guarantor is employed and a home owner.
Most if not all loans come with some form of credit check. What matters to you if you have a less than perfect credit score is what the information from the credit check is actually used for. In the case of guarantor loans and payday guarantor loans credit checks are made, however for the borrower they are only made to check if they have been registered on an IVA or have been registered bankrupt.
If you do not wish to be credit checked the chances are you will not be able to get a loan outside of possibly a doorstep loan. If you do want a guarantor loan which would be cheaper then talk to the guarantor loan company about their credit check procedure and what data they use it for, perhaps they can set your mind at ease.