Finances when starting out #financial

I remember back to when I was first starting out in the world on my own, well it wasn’t all that it seemed, house prices were high leading to rental prices to sore about my modest income. So for me to rent a one bed-roomed flat it was borderline when it came to financial check, so I ended up needing a guarantor for the rent.

Luckily my mum came to my aid and happily signed the relevant documentation (while obviously lecturing me about ensuring I kept up with the rent payments!) I was glad that I had someone close to help back me up on this financial commitment, as a show of respect I never faulted on the monthly payment, much to my mums delight!

But what happens if you need a loan with bad credit? Can you still fall back on those close to you? I am glad to say that my credit rating still remains positively strong, but if you have run into trouble in the past it can be hard to shake this on your credit score. Its especially frustrating if you are attempting to payoff and fix the rating and be actively turned down for loans or credit cards, especially if they are needed to purchase something important such as a vehicle for a new job or to consolidate current liabilities.

Fortunately there are companies out there like Glo who do offer guarantor loans, these loans work on the same basis my rental position did, you do have to remember that as a guarantor you are financially and legally bound to repay the debt, so its not a decision you should enter into lightly.

The most important thing to remember is to ensure you do not bite of more than you can chew when it comes down to any financial borrowing, even if on paper it seems to be easily manageable I would always ensure you keep a 10 – 20% contingency budget.

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