Why No One Wants To Be The Guarantor?

Why No One Wants To Be The Guarantor?

Posted by on Oct 30, 2016 in Loan |

A guarantor is someone who vouches for you and undertakes to, if the user for any reason does not fulfill their obligation to continue payments.

Businessmen and citizens are becoming more difficult to make decisions to borrow. Not only are they cautious. And the other party, the banks are, before approving the loan. placing the clients under scrutiny. No wonder, because the number of loans that are in arrears is growing from month to month.

Number of people who agreed to be guarantors and came into a situation where, instead of their relatives and friends repaying loans from year to year, they have to.

Statistics also show that, due to the economic crisis, fewer people want to be guarantors.

Some banks provide the possibility that the debt prescribes a family member or friend. That family member or friend later must repay the loan instead of the client. This form of debt repayment resembles the obligations of guarantors.

New Possibilities

Some banks have gone one step further and give customers new possibilities. The possibility that in the event of job loss, freeze the payment of war for two years. With the obligation that every three months the bank submitted evidence of employment status.

Guarantors are suing the main debtors, for which the banks had to pay the amounts that are guaranteed. Guarantors mostly obtained disputes, but in addition to being paid off someone else’s debt. To await trial costs, charges can sometimes reach the height of the credit. And if the principal debtor has no job and no assets, no court will be able to help them to collect receivables.

If it comes to that scenario where guarantor repays others’ rate, he has the ability to, said by experienced lawyers, to sue the principal debtor to offset the costs. The guarantor must account and risk. Because if the principal debtor has no property, and in the meantime, was left without a job, there is not too many ways to collect something from him. Then the most common scenario that not only has paid his debt but also wasted ran a set of judicial proceedings.

The process can take from six months to several years. The costs depend on the value of the dispute of the loan amount.

For many banks, it was important to have as much collateral, so they asked for guarantors even for housing loans. However, banks now avoid this type of security because there are fewer and fewer people who want to pay off other people’s loans and guarantee for them.

Many people do not like risk, especially financial ones. Being a guarantor is not at all a rewarding and you must make sure that the person you warrant to really be able to repay the loan. These are just some of the reasons why nobody today wants to be a guarantor.
Fortunately, fewer banks looking for guarantors and loans are generally credited directly to clients. So, if someone asks you to vouch for him, remember what consequences this may have on your financial situation.


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Permanent Life Insurance Policies And How To Understand Them

Permanent Life Insurance Policies And How To Understand Them

Posted by on Oct 24, 2016 in Insurance, Loan |

At first, these kinds of policies are strictly designed for providing coverage for the rest of your entire life.

Also, permanent-life-insurance-policies contain a value of components. These contract deals are giving you reasonable chances to build up your account through parts of your premiums, which go to your account.

Life Insurance Policies

Now we are coming to the famous 702 permanent life insurance policies. Which are, by some funny “experts” designated as retirement accounts. A 702 is permanent life insurance policy, which is solid as any other which is founded by paying higher than usual premiums and that is more than necessary to keep it in force.

These policies are tax-free deals, and from that reason you can borrow policy cash value from it, during retirement. That is whole misunderstanding fuss that came from sellers of 7702s, as a one way toward a tax-free retirement, which is not true at all.

Main difference is that in these policies, loans are not obliged, in general, to be repaid while the holder of policy is still in life, and if policyholder dies somehow, family benefits from the policy. So, retirement policy is somehow different, don’t you think?

If you ask Wohlner, an independent financial adviser, for advice, he would say that taxes aren’t only thing that you should consider when you are planning to apply for retirement saving account but also any option for savings with regards to your complete situation. It is not enough to just aim on potential savings from taxation.


The 702 strategy plans carries many risks with the package. In case you don’t pay back the loan deal, all your investment gains that you borrowed could easily become taxable. These kinds of “afterlife savings” are not so easy to understand. They have many positives aspects when it comes to preparing for all unpredictable situations that life carry, but also cons are quite serious.

For example, if you die while your loan deal is outstanding, lender will make sure that your payments will be repaid from reducing or even eliminating the collected amount your beneficiaries receive, out of policy death benefit for instance. Also, there are other various ways for lender to do this. In some occasions, interest can be charged from any outstanding loan balances. Banks or other lenders, in first place, think about them self. This is business after all, and there is no place for sympathies and mutual understandings. That is why as much as you pay the premium into these policies; it will be eaten up by fees and high commissions provided by banks.
As one song say: “There is no anything pure in this world” – so this should be the slogan that leads you through all possibilities given by institutions such as banks.

Always think twice when you decide something. Specially if you apply for some of their cash loans, saving and retirement accounts, or mortgages loans. If you make few mistakes it can and up eating your plans and destroying your hopes.


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Payday Loans Online

Payday Loans Online

Posted by on Oct 21, 2016 in Loan, Payday Loans |

Payday loans are now conveniently online. Instead of waiting for a line of customers at the lending office for payday loans, you can complete payday loans applications online from wherever you are. When choosing payday loans lending companies you could also choose a match-making service that will match you up with the best and payday loans lending company available to you. Without driving around, you can find the best rates and fees for payday loans online which saves you time and cash!

When completing payday loans, the lending company doesn’t need to check your credit score which makes payday loans a financial option for almost everyone. The three things you will need for payday loans applications is your identification information, proof of employment and/or income, and a bank account. The identification and employment information is for your safety and the payday lending company safety.


You are proving who you say you are which means that payday loans are only available to those using the correct identity–protecting you and the lending company from identity theft.


Employment and/or income verification just prove to the payday loans lending company that you have the resources to pay them back and on time. This verification protects you, the borrower, from the possibility of falling prey to high-interest rates and payday loans fees if you weren’t able to pay back the payday loans during the allotted time.

Because payday loans are getting easier and easier to do, there are more lending companies out there. Make sure that you check the credentials of your choice of payday loans lending company, including and especially when doing online payday loans. You want to make sure that the sensitive information you provide on payday loans application will be safe with the lending company. Also, make sure that the lending company for payday loans follows the state law where you’re located. This would require you to do a little research before applying for payday loans or cash advance payment prior to your payday.

Risk of payday loans

The best way to eliminate the risk of payday loans is to set aside your own stash of emergency cash so that you can have your own payday loan when an emergency comes. That way you don’t have to pay for payday loans fees and interest rates. The biggest risk to payday loans is the interest rates. Payday loans have the highest interest rates within the loan and credit industry.

Payday loans interest rates can add up to four-digit percentage amounts of the payday loans total amount. If you aren’t sure that you can pay back the payday loans by your next payday, it may not be worth the amount of fees and interest you will be paying in return for your payday loans. You may end up paying the lending company more than payday loans amount they gave in the beginning. Payday loans can accrue debt faster than any other loan account in the United States.

Payday loans are there to bail you out when the financial situations are tough, but make sure you weigh the costs and risks to the advantages.



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Is A Guarantor Loan Right Choice For You?

Is A Guarantor Loan Right Choice For You?

Posted by on Oct 7, 2016 in Loan |

If you don’t have good credit rating, or if you don’t have credit rating at all, then getting a loan may be difficult task for you. You will have to struggle to get a loan in the first place, or you will be obligated to take payday loan which will result you paying high interest rates and you could end up in a real financial catastrophe. Not long ago new type of loan has shown up on the market, a guarantor loan. This type of loan provides you to take a loan and a second person will guarantee for the money you took.

What is a guarantor loan?

This is an unsecured loan that requires a second person to guarantee for the money that first person took. It can be taken on one and up to five years and the amount that can be borrowed is between 1,000 and 7,500 dollars. This is a perfect solution for those people who have bad credit history, or for those who wouldn’t be able to obtain a loan on the other way.

This loan is different than payday loan, the interests are much lower and you don’t have any additional fee and charges.

How can you decide if this loan is good for you?

Simple, if you have bad credit history, or you have been rejected by other lenders company, then guarantor loan is the right solution for you.
Here you will have possibility to borrow bigger amount of the money, then, for example, with payday loans, which use all possible resources to target people with bad credit history. With this type of loan, you will be able to refresh your credit history, by making payments on time and proving them you are responsible borrower.

In order to apply for this loan, you will have to be over 18 years old and to have a checking account. You will need to prove you have the means to repay the loan and that you are capable to repay it within arranged time.

Considering guarantor, anyone can be that, considering he or she is not financially linked to you. A guarantor can be family member, neighbor or coworker. In order to your guarantor be accepted, it has to be over 21 years old, with good credit rating and has to be home owner.

Regarding interest rates, they are going to be higher than they would be, if you had good credit history. This, of course, depends on the company, but the usual APR is around 50%. This may seem little too high, but it does represent a risk that lender took and borrowed you the loan. The incredible fact is that this is one of the lowest APRs available for people with bad credit rating. But if you repay your loan within arranged time, it will give you a chance to improve your credit rating.

There are two important factors that should be taken into consideration when you choose guarantor loan: interest rates and additional hidden fees.


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What Should I Know Before Applying For A Payday loan?

What Should I Know Before Applying For A Payday loan?

Posted by on Feb 19, 2016 in Loan, Payday Loans |

The majority of the population today faces financial problem every day. The reason for these financial problems are often low income, large bills and not being able to spend your money sparingly. Financial problems in households are sometimes connected with the number of family members which means more children, less money, this was recently proven, but it does not mean you should not have children, instead you will have to learn how to allocate and properly use your money.

When faced with unexpected expenses or expected but impossible to avoid, people often choose to contact their bank.

Banks and other financial institutions might provide you with the current solution, but it cannot solve your financial problems forever, the only one who can do that is yourself. When people contact the bank, they can hear about different types of loans bank offers.

For unexpected expenses such as bills, unexpected expenses of fixing and repairing your home or car, people often choose the so-called ‘payday’ loan.

Short term loan

Payday loan is a short term loan that a lender gives to you for a purpose of covering unexpected costs. The amount of money bank gives to you is normally small, up to about 500$, and you are required to repay them when you get your next paycheck. The conditions for granting this loan are not so demanding, a person should have a monthly income, a driver’s license, social security card and a bank account.

The money is instantly transferred to your bank account and you are able to spend it. Having this opportunity to take the money when you need it the most is a true blessing, however when you know you have this opportunity you can become pretty carefree and continue taking it whenever you are in need. This can be not such a good thing, especially if you take another payday loan to cover the cost of repaying another payday loan, you are then getting in a bank’s vicious circle. Some people never leave this circle and the moment they repay one loan they take another one. Taking one loan after another just makes you lose more money in a long term.

Banks interest rates

Even if it is an outstanding opportunity to fix your problems momentarily it is a bigger problem for you later. We should not even talk about banks interest rates and how much will you have to pay them for their services. People who take this loan should have to be careful and calculate interest rates in front, just to be sure they will be able to repay and that they won’t spend their money in vain. Sometimes borrowers have to pay a double of what they took in the end.
The conclusion is that if you are in need for a certain amount of money in this moment, the good idea is to borrow it from the bank and make your repayment in the closest possible time.

The possibility of taking another loan to repay other is not a good thing at all, so take care when you are applying for this loan and calculate everything before you lend money


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