Can I Use Guarantor Loans For Debt Consolidation?

Given that many people all across the country are suffering from debt issues, it is important that people take steps to improve their finances and minimise their financial difficulties. There is never any point in ignoring debt problems or hoping that they will go away because they never do.

You may find that ignoring a problem will help you to find the solution that is best for your needs, but this isn’t the case and there is every chance that your financial problems will become much bigger and more problematic if you do nothing to resolve them.

This is why seeking out assistance and guidance from an expert is a very sensible move. You should find that there are debt advisors in your local area and an internet search will hopefully uncover a specialist who will be more than happy to provide you with a solution that is palatable to your current financial situation.

You will find that many experts and advisors will tell you to consolidate your debts if you can, and this is definitely a smart option for people to take. When you consolidate your debts together, you give yourself one thing to focus on.

Focus on your debts in the most effective manner

Having one debt to focus on is a good thing because it will minimise the likelihood of you forgetting to make a payment. There is also the fact that if you consolidate all of your debts together, there is a good chance that you will have less money to pay off. This all depends on the rate of interest you have with the financial solution you obtained that allows you to bring all of your debts together. In this regard, obtaining a guarantor loan with the intention of consolidating your debts is an extremely sensible and smart move.

Debt consolidation works when you convert a number of high-interest loans and payment plans into one more affordable payment plan. If you have payday loans outstanding, you will find that taking out a guarantor loan that enables you to pay off these loans, will save you money. This is because the APR associated with a guarantor loan is considerably more attractive than the APR associated with a payday loan, which allows you to save money.

When you think about the number of people who have struggled with payday loans, sometimes having to roll their debt over, you will find that opting for a guarantor loan to consolidate your debt is one of the most sensible options.

Seek help in paying off loans

While you don’t have to turn to a guarantor loan to make this style of action, you may find that it is the only viable option. If you are struggling with a bad credit rating, you may find that you are unable to obtain a loan from a traditional lender. You should find that a guarantor loan will meet the two main elements you need when looking for a loan to consolidate other debts:

  • They are willing to provide you with a loan, regardless of your credit rating
  • They will provide you with an affordable APR rate, often around 40%

You obviously need to find someone who is willing to act as a guarantor for you, but by looking to consolidate your debts and take control of your financial status, you are showing that you are serious about your finances. This means that you are acting responsibly, which is something that most people are happy to see in their friends or family members.

While you need to make sure that your guarantor meets the criteria laid out by the company you are borrowing from, you also need to make sure that the guarantor is happy with taking on this role and responsibility. There is a great deal to be said for finding someone who will give you a helping hand, but if you show that you are looking to make a positive change in your life, you should find that they are willing to give you the support that you are looking for.

If you do have debts or outstanding loans, taking steps to clear these and focus on one singular debt makes sense. This is why applying for a guarantor loan for debt consolidation is an option that makes a lot of sense.

Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.