"Payday" Loan Guarantor

MEM62

slipd wrote: »

Thanks everyone! Definitely the confirmation, if any, that was needed

Slightly different note, but I'm 'advising' someone else now in the office...

If ordered, would you say this was a fairly accurate, general order of preference when looking at regular loan options?

1. your bank
2. price comparison, best rate/option etc.
3. secured loans
4. payday loans
5. guarantor loans

I think those are main ones, certainly that I know off. It feels like I'm speaking in a different language at the moment to my colleague!

An order of preference or order of desperation?

Once mainstream lines of borrowing are closed any sensible individual should take the hint that they should not be borrowing further. If mainstream lenders consider you too much of a risk then your finances are already stressed.

Secured loans should only be used for life's major purchases, such as houses. Anyone getting as far as option 4 and 5 on your list should have stopped borrowing a long time ago, are in a hole and continuing to dig. Thus lining themselves up for years of financial misery.

yksi

I think I'd go
1. price comparison
2. your bank
3. credit card (they're often cheaper)
and like others noted I wouldn't want the other three at all. The thing is, they rarely fix the problem in the first place. If you're that desperate for cash, you're only going to run into more horror after that and either ruin a friendship, lose your property or get yourself a CCJ.

New_World_Man

As the name suggests, a payday loan should “tide you over”. £3.5k suggests a huge wage if that amount is free to repay a loan on payday. A huge wage and having an urgent need for cash is not a reassuring combination.

ndf9876

Swap 1 and 2 round. Delete options 3-5 inclusive and replace with '0% Money Transfer Credit Card".