Taking out a guarantor loan is a big commitment. Not only are you applying for a loan that you must be able to make a financial commitment to pay off the debt at the agreed repayment times, but you are also bringing on board your guarantor. The guarantor is responsible for paying the debt should you fail to do so, causing potential problems to that relationship, as well as financial difficulties for the guarantor if they are also unable to pay the debt.
Understanding how to manage your bills effectively is a good starting point for managing your loan debt and repayment terms. With a few tips on how to set up a framework of bill management, you can be in the best position to manage paying back your guarantor loan.
The first thing you should always do with any financial matters is to get as organised as possible, as early as possible. Make a spreadsheet or list that details all of your incomings and outgoings. This should include your rent/mortgage, all utility bills, food bills, leisure funds, as well as all credit card, store cards, loans, and other debt.
Have this in one place that is easy to find, and easy to read. The information should include the exact amounts for each, and the dates in which repayments are required on the debts, and when rent is due etc. Having a quick overview will help you keep track of all outgoing payments each month, to ensure you never miss a payment.
When you are first setting up direct debits or payment dates there might be scope to choose a date that suits you. This could change over time due to your own employment situation or financial situation. Always look for flexibility and be open and honest with each lender or provider with a view to finding payment dates that suit you and your cashflow best. Always look for more information regarding grace periods, for instance the period of time post a bill date before you are charged a late fee (this is often around 15 days).
If it helps you, set up email and text alerts for all of your bills, so you know when they are due and that you have enough cash to make the payment on time. Also, sit down at least once a month to pay all of your bills in one go, bringing peace of mind that everything has been paid.
For many people, missed payments take place because they have just forgotten to manually make the payment on time, rather than defaulting on a payment. If this is the case for you, take the stress of managing payments away by streamlining the process and setting up direct debits and automatic payments wherever possible. At Clear Loans we set up direct debits for our customers, and also take back-up payment details of debit and credit cards, before contacting the guarantor. We do this so as not to pile pressure on the borrower, and to stop the potential for a debt snowballing out of control.
If you would like to speak to a member of the Clear Loans customer service team pick up the phone and call 1300 430 935 and we'll be happy to assist. With a strong plan in place to manage your bills you can remain one step ahead of your debt, especially if you are considering taking on a guarantor loan with us.
