After having a panic with money a couple of years ago, I have been looking into guarantor loans, just in case a similar situation crops up again.
Why I have considered getting a guarantor loan
The problem that I had was that the pay system for my job was being moved over to a new system. Unfortunately, the new system had many issues and although I had done a lot of work, my pay didn’t come through for over two months. I was out of pocket by two months worth of work. My employers were desperately trying to sort this situation out as there were many employees of this company that were in exactly the same position as me. With bills that needed paying and no money coming into our house, due to this error, I started to worry. After I’d used some of my savings, I needed about £1000 to cover my upcoming bills. I felt awful having to ask my family for this money, even though I knew I could pay it back immediately after I’d been paid so I looked into getting a guarantor loan with Glo Loans.
What are guarantor loans?
A guarantor loan is a loan that you take out with a friend or family member that promises that they will pay your loan if you are unable to pay it. Glo Loans try to sort it out with the person taking out the loan before approaching the guarantor. Before a loan is taken out, they talk to both parties first to check everyone knows the finer details and understands how guarantor loans work.
How can you apply for a guarantor loan with Glo Loans?
There are a couple of ways to apply for a guarantor loan. You can apply online or you can ring them to discuss this further. All details are on the Glo Loans website. There are rules and regulations on there that need to be read when considering getting a guarantor loan with Glo Loans. You can borrow between £1,000 and £7,000 with APR currently standing at around 49.9%. The loan can be provided very quickly (within 24 hours), dependent on signatures from the person taking out the loan and the guarantor being received by the company. Please check the Glo Loans website for current rates, rules and regulations.
Deciding to take out a loan
For my particular circumstances, borrowing £1,000 would be manageable. I could pay back £102 per month for a year. This would come to £1,233 overall, according to the online calculator. If the same problem were to happen again with my work’s pay system, I would be able to pay my bills with the loan then pay back the loan when work pays me. This would certainly be an option for my set of circumstances. Fingers crossed that work’s payroll system has ironed out the mistakes now though.
Disclosure: This is a Collaborative Post.