Emergency Loans

Should I use Payday Loans in an Emergency?

If you have an emergency and suddenly need money, then you may wonder what the best thing will be to do. It can be a difficult situation too as it is easy to panic and worry about what might be the best approach. Unfortunately, when we panic, we tend to make rushed decisions without properly thinking through what we are going to do. This means that we can end up doing something unsuitable and then regretting it. However, if we plan carefully for potential emergencies then we will not make this mistake. It is a good idea to have a plan as to what you might do. For example, put together a number of steps that you will go through to see what action you should be taking.

Consider if the Payment can be Delayed

It is a good idea to start by checking whether the money really need to be paid out immediately. Think about whether you can delay paying at all. If it is a bill, for example, then you might be able to get in touch with the person who wants the money and ask if you can delay sending the money. They may agree and be happy to help you. If it is not a bill and you need to buy something, then think about whether you might just be able to wait until you next get paid in order to pay for it. Obviously, this will depend on what it is that you need, what the emergency is etc. but it is worth making sure that you really do need to spend the money right now. It can be that the panic has meant that we are not thinking clearly and that we have not thought this through properly.

Check Savings & Current Money

It is good to start with checking the money that you have. Consider what you have in your current account and in any savings accounts. You might have money there that you will be able to use to cover the costs of the emergency and you may have forgotten that it is there. It could be that you have forgotten how much you have and so it is well worth a look. You might be holding on to the money for something. If this is the case then consider whether the purpose is worth it. For example, if you are saving up for a luxury item, then it might be a good idea to use the money for the emergency and then save up again. Also, if you have money to fall back on, then this is just the type of situation when you should be spending it. You might be reluctant to spend your savings because of the interest that you are getting on them. It is worth checking how much this is, because borrowing money will normally be more expensive than spending your savings. This is because the interest that you get on your savings is likely to be a lot lower than any interest that you will pay on a loan.

Compare Borrowing Options

It is very wise to compare all of the borrowing options that you have. You need to make sure that you are using the most suitable borrowing method and that you are not paying more than necessary for the loan. This will take time and so it is a good idea to make sure that you have a good knowledge of the different types of loans. How much you can borrow with them, what they are suitable for, how you repay, how much they cost etc so that you can make a quick decision when you need to. Then you will know for sure whether a payday loan will be the right loan to use in an emergency or whether there are alternatives that might suit your needs better.

Who are Guarantor Loans for?

You may have heard of guarantor loans, but you might wonder who they are actually for. This is because you may not know much about them or may have just seen them advertised on the television. They are not traditional loans and so less people will have heard of them or used them. It is a good idea to know a bit about them though as if you need a loan then you should be comparing all loan type in order to decide which will be the best for you and so knowing about all of them is useful. You might possibly be asked to be a guarantor for this sort of loan too, so knowing what they are all about is very handy.

Guarantor Loans

Are Guarantor Loans for Someone Specific?

It is worth knowing that a guarantor loan was designed to help those that have a poor credit record to be able to borrow larger sums of money. Normally loans are not available to those with a poor credit record as traditional lenders do not want to take on someone that they do not trust. However, some lenders realised that these people needed some help and created payday loans which they could use to borrow small amounts of money in emergencies. But these only provided borrowers with up to £1,000 which was often not enough for what they needed to buy. Therefore, guarantor loans came along where more money could be borrowed but the borrower needed someone to make the repayments for them if they could not do it. This enabled the money to be lent without the worry of trust between borrower or lender.

How do They Work?

So the borrower will need to nominate a guarantor. They will need to have a good credit record and be prepared to cover the cost of any loan repayments that the borrower misses. This is up to the borrower to explain and organise. Therefore, they will need to find someone that will be happy to do this for them. Often it could be that they nominate a parent or grandparent but it can be anyone that they know that will agree to do it. Once the loan is set up it will still be the borrower’s responsibility to have the loan payments go by direct debit form their account. However, if when the lender tries to take the money there is not there or not enough, they will go the guarantor to make up the missing balance. The specifics of how it works will change depending on the specific lender and their precise conditions.

Apart from this the loan works very much like a normal loan. The borrower will be given a lump sum of money to spend on whatever they wish and they will then be expected to make monthly repayments until the loan is repaid. How many payments it takes will depend on the amount that they borrow and how much the repayments are. A missed repayment will incur a charge, just like a normal loan, but with this loan the repayment will then be taken from the guarantor.

If this happens then the guarantor may expect the borrower to repay them. However, it will be up to the borrower and the guarantor to come up with a plan. The lender will not get involved in this. It might be that the guarantor will be willing to make a few payments and not have the money back, but it is important for them to discuss this with the borrower. If the guarantor does want their money back, they will need to make it clear that they will want this to happen and what they expect with regards to the timing of this. Will they expect I as soon as possible or will they be happy to wait until after the loan is repaid, when the borrower will have more money? It is important for this to be talked about first.

Guarantor Loans

How to Protect Your Guarantor

If you have a guarantor loan, then it can be a good idea to make sure that you look after your guarantor. This is because they will be important to you, they are helping you and you do not want to fall out with them over anything to do with this loan. Therefore, there are various things that you can do to help them.

Make Sure They are Aware of How Much They Could Pay

It is very wise to show them how much they may have to pay in full. Explain to them how much they would have to pay each month if you missed a repayment and how much they might have to pay if you missed all of the repayments. Obviously, you will not want to miss any payments if you can help it and you will certainly not want them to pay the whole loan off, but it is wise to let them know what they might need to do. This will allow them to think about whether they will need to budget and plan their spending so that they have this money available if they need it.

Make Sure They Understand How the Loan Works

They also need to be clear on how the loan works. They will need to know that if you miss a payment they will have to make one. They may pay more than you due to any additional charges that are added on if the initial payment is missed. They will also not necessarily be asked for their payment on the same day that the borrower is asked. Therefore, it is important for them to know that information so they can properly prepare for it. It should be in the terms and conditions, but it might be easier to ask the lender to clarify so you have all of the facts that you need.

Come to an Agreement About you Repaying Them

It is a good idea to also discuss with them what will happen if you do miss a repayment. Obviously, they will realise that they will have to make it, but what happens them? You need to discuss whether they will just make the repayment and that will be the end to it or whether they expect you to repay the money to them at some point. It can be good to go into specific detail to find out when they need the money, if they do want it to be repaid. It could be the case that they will want it as soon as possible or that they are happy to wait until you are ready. It is worth having a long discussion about it all. You need to make sure that what you agree is fair to both of you and something that you will both be able to commit to and stick to.

Keep Things in Writing

It is a good idea to write down what you agree with them with regards to repaying and each keep a copy and perhaps even sign it. This might seem a bit extreme but it could mean that things will be a lot better later on. For example, if you miss a few payments and you cannot repay them and they suddenly need some money themselves they may put pressure on you to repay them. This could make your relationship strained as you struggle to get them the money and they get cross with you. If you have an agreement written down, which states that you do not have to repay right away, then this could help you as you could remind them of that and it should take the pressure off you.

Personal Loans

Will Personal Loans Provide me with Enough Money?

If you need some money then you may wonder whether a personal loan will be able to provide you with the money that you need. It is a reasonable question as it is important to make sure that you compare all of your options in order to make sure that you are getting your money from the best possible place. If you do decide that personal loans are the answer, then you will need to check to make sure that they will provide you with what you need. You will find that there are a lot of different lenders that provide these loans and you will find that they can differ quite a bit. This means that you will need to compare them and find out what the differences are. Then you will be able to find out whether they will suit your needs, including being able to provide you with enough money.

How Much Will Personal Loans Provide?

There is no easy answer to this question. This is because loans will vary in the amount of money that they provide. If you are looking at personal loan s which are the type that are short term loans, then it is likely that you will be able to borrow between £100 and £1,000. This is a fairly small amount compared to other loan types but it can be an advantage only being able to borrow a small amount. The reason is that it will be much easier to repay as you will not have so much to repay when you borrow less. This also means that the loan will not last so long. This can also be a good idea because you will find that you will not need to worry about being in debt for a long time. This may not be a worry for some people, but there are others that will feel concerned and will be happy that the loan will soon be paid off and they will no longer need to worry about them.

Will it be Enough?

Whether it will be enough will depend on how much money you need and what they are providing. You will need to compare the different loan providers though because they may not all let you have the same amount. You will find that there are differences in how they operate and it might not just be that they will offer different amounts of money, but they may not offer the maximum amount to everyone. This is because there will be some lenders that will want to make sure that they can trust their borrowers before lending them large amounts. They may therefore only let them have a small amount to start with and once that is successfully repaid, they will then offer them more. Therefore, if you need to borrow a relatively large amount, they may agree to lend you all of it. Therefore, you will need to consider whether you should contact the lenders to check this before you decide on which one to apply to. This might seem like a bit of a hassle but it will mean that you will know which ones will be able to provide you with what you need and then you will be able to compare them so that you can find the one that you think will suit your needs the best. Remember that there will be other things that you will need to compare those that can help you with, such as how much they cost and what the lender is like as you will want to make sure that you get the very best borrowing experience that you can.

Personal Loans

How to Choose the Best Personal Loans

If you have decided that you would like to have a personal loan, then this should just be a first step. You should be careful not to then just decide that you will have the first loan of this type that you come across. It is really important to make sure that you do not make a hasty decision. This is because, although all loans may look quite similar, you might find that you will see quite big differences between them when you compare them. You want to make sure that you pick the one that you think will provide you with the best value for money. There will be different things that will be important to different people though and you should consider the list below but also think about what will be the most important for you.

Interest Rates

It can be tempting to compare the interest rates on the different loans and use that as a basis to compare them. It can seem to be a great idea and if you use a comparison website you might even find that this is the way that they will judge people. However, it is a good idea to think carefully about whether this because it is not necessarily the best way to judge lenders. There are two main reasons for this. The first is because you might find that they do not use the same interest rates. Some lenders might quote their APR or annual percentage rate and others may use the AER or Annual Equivalent Rate which includes any fees that they are charging as well. This means that you are not comparing the same figures. Also, some may have additional fees as well as the interest rate.

Other Fees

The other fees might include administration fees that everyone has to pay. These will vary between lenders. You will also have to pay fees or charges if you miss the repayment. This will vary between lenders as well. Even if you are confident that you will be able to repay the loan, it can be a good idea to find out how much these fees might be. It could be that there are several lenders which are very close on price and you could use the fees as a way to decide which you think will be best for you to take out.


It is so important to make sure that you will be able to make the repayments on time. You might find that the lenders will differ in how much they expect you to repay and how often. It is really important to check this out and compare between lenders. This is because it is important that you choose a loan that you will be able to repay. You should have a look at your bank statements and calculate how much you will be able to afford to repay. This will enable you to be able to work out how much you can afford and you will then be able to match the loan to that.


There may also be other things that you are concerned about. You might want a lander that you have heard if or that has good reviews or that has good customer service. You will need to do further research such as looking at their website and at review sites in order to find out this information. It is a good idea to think about what is important to you and then trying to find the lender that will offer you the best value for money. It can take time but it will be worth it as you will have a better borrowing experience.