How To Manage A Guarantor Loan

A guarantor loan is a loan where someone else other than the borrower agrees to repay a loan if the borrower cannot afford to make repayments for any reason. It is a way for those with bad credit, or those looking for a house deposit to gain finance when they are struggling through traditional lending sources.

Due to the nature of a guarantor loan it is similar to a joint debt, where both people are responsible for paying back the loan. One of the serious personal points that has to be made about a guarantor loan, is that you have to be completely sure that the relationship that you have with your guarantor is strong, and won't be put under undue stress if payments are not made on time.

As soon as we have agreed a loan amount and repayment schedule with you, you will be asked to set up a direct debit, as well as provide details of another debit card/credit card as a back up payment method should a direct debit fail for any reason.

If you wish to make any changes to your agreed repayment terms with Clear Loans, once a loan has been agreed and paid into your bank account, it is important to understand the following rules:

Your first payment date is set in stone. Always be sure that the first date chosen is one where you can afford to make the payment on this date.
You can change the date of payments after the first payment date. To do so, please contact your advisor on 1300 430 935. You can only change your payment date once in a 2-month period.
You cannot change the date of payment if you are behind with payments.
You must provide us with 5-working days or longer, prior to the current payment date, to change the date. This gives enough time to notify your bank of the changes.
With some loan lenders there is a strict policy when it comes to making repayments under the agreed terms. If you find that you are in a position further down the line where you can afford to pay more into the loan repayment, or you wish to pay off the loan early, we will never charge you a fee for doing so.

If you think you might not be able to make your next payment, contact your advisor immediately to notify them. With a guarantor loan, we will always seek payment from your back-up cards if a direct debit fails, and from there contact your guarantor for payment. In the most extreme cases, where neither can afford to pay, we will then move the debt on to a professional debt collection agency.

The last thing that we want is for a debt to become even greater and unmanageable. That's why we've put together some tips on how to manage your guarantor loan effectively.

Guarantor Loans

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Borrow up to $15,000 within 24 hours

Keep an Eye on Your Debt

If you have multiple debts it might be an idea to consolidate them into one single, more manageable debt. We have helped countless customers to do that by taking out a guarantor loan through our service. Always keep an eye on how much debt you have left, whilst making regular payments.

Make Payments on Time

We will never add fees for late payments, but it is important for you that you make payments on time, at the agreed scheduled dates that are set up at the beginning of your agreement. Of course, you can change your payment date if necessary (see above).

Pay More than the Minimum

If you want to make a higher payment than your direct debit is set up for, we welcome that without adding any extra charges to do so. It will help you reduce the overall amount you have left to pay, which is a priority for our team.

Pay off the Debt Early

We also welcome early repayment of the loan in full, if you have managed to secure the full amount without it placing you in greater financial difficulty. Contact your Clear Loans advisor to find out more information about how to go about paying off your debt early.

For more information, or to update your Clear Loans Advisor on a change in your circumstances, contact us immediately on 1300 430 935.