If you are struggling to repay your guarantor loan, do not skip town or turn a blind eye, as the person who signed on to become your guarantor will have to pay for your negligence. You need to ensure you repay your guarantor loans on time, each month. If you think you will be unable to make the payments down the line, you need to take steps to ensure that does not happen.
Here are a few tips you should follow to pay off your guarantor loans:
1. Round Up the Loan Repayments
Rounding up what you have to pay each month helps too. You can shorten the duration you need to pay off your loan by one or two months. All you need to do is round up the monthly amount you owe. For instance, if you are required to repay £273.13, you can round them up to £300. In short, you will pay more money each month, which will in return, shorten the months you need to repay the loan.
2. Start Making Bi-weekly Payments
If possible, pay half of the loan amount every two weeks to your lender instead of making the usual monthly payments. You may have to cut back on other things, but you and your guarantor will feel relieved, knowing you are on your way to repay off your loan quicker than expected. However, before proceeding with this strategy, you need to discuss doing this with your lender first.
3. Make an Additional Payment
If you are unable to make bi-weekly payments, you can make one additional payment each year. You can use the money you receive from the bonus at work or from your tax refunds to pay off your loan quicker. Another option is to take your monthly payment, divide them by 12 and add the sum to every payment you make in the future.
4. Set-up an Automatic Payment Option
If you tend to forget to make certain payments, you need to set up automatic payments. You will not have to remember to pay the guarantor loans payments, as the automatic system will remember it on your behalf, making monthly payments to your lender on time. This will save you from defaulting on your payments and late fee charges.
5. Sell Things to Earn Additional Cash
You can save money to pay off your loan by selling your items on sites like Amazon or eBay. If you are into arts and crafts, you can make something and sell it on sites that cater to people who make things from scratch. You can hold a yard sale. If you have any item that you no longer use, why don’t you consider selling it to make a quick buck. It is a smart way to save money to go towards paying off your guarantor loan.
If you know you will be unable to make payments later on, you need to find smart ways to save up money to prevent that from happening.