Guarantor loans have emerged as a lifeline for individuals facing hurdles due to poor credit history. Among the key players in the UK, Buddy Loans offers a ‘financial hand-up’ to those in need, allowing borrowing between £1,000 and £10,000 with repayment terms ranging from one to five years. However, what happens when unforeseen financial challenges arise, and repayments become a concern?
Understanding Buddy Loans:
Buddy Loans operates on a unique model that prioritizes trust over traditional credit history assessments. Applicants secure a loan by having a trusted ‘buddy’ guarantee the amount. This innovative approach has positioned Buddy Loans as a viable option for individuals with a history of defaults or county court judgments.
Qualifying Buddies:
A ‘buddy’ can be a friend, family member, colleague, or anyone who trusts and understands the applicant’s financial situation. Qualifying buddies must be between 21 and 75 years old, hold a UK bank account, possess an ‘OK’ credit score, and have a minimum monthly income of £1,000. They can be homeowners, tenants, or living with their parents.
Benefits of Buddy Loans:
Buddy Loans distinguishes itself with ‘any-purpose loans,’ providing flexibility for various financial needs. Moreover, timely repayments can contribute to improving the borrower’s credit history over time, offering a pathway to better financial prospects, such as securing mortgages or other traditional financing.
Challenges and Communication:
Financial setbacks can happen to anyone, and if a borrower faces difficulties with repayments, communication is key. Buddy Loans emphasizes the importance of open dialogue, urging borrowers to keep the company informed of any potential problems. In cases of financial difficulty, Buddy Loans assesses situations individually, offering potential solutions, including payment holidays.
Payment Holidays and Financial Advice:
A payment holiday allows borrowers temporary relief from making repayments, particularly useful during income fluctuations. While interest continues to accrue, Buddy Loans assures that payment holidays won’t impact credit scores as they aren’t reported to credit reference agencies. However, it’s essential to view payment holidays as temporary measures, and the lender may provide financial advice to navigate the challenges effectively.
Early Repayment and Transparency:
While some lenders impose fees for settling loans early, Buddy Loans stands out by not charging any such fees. This flexibility allows borrowers to save on interest fees if they find themselves in a position to repay the loan ahead of schedule. Transparent communication is crucial, and borrowers are encouraged to reach out to Buddy Loans promptly if they anticipate challenges in meeting upcoming repayments.
Staying on Good Terms:
Maintaining a positive relationship with Buddy Loans involves proactive communication and addressing financial concerns openly. Struggling in silence can exacerbate the situation. By discussing potential problems, borrowers can work collaboratively with Buddy Loans to find viable solutions and safeguard both the loan and the credit history.
Debt Movement Assistance:
For those facing overwhelming debt, Debt Movement offers expert guidance on regaining financial control. Requesting a free callback provides an opportunity to explore strategies for managing and potentially reducing debts, ensuring a more stable financial future.
Buddy Loans remains a valuable resource for individuals navigating challenges. By fostering transparency and proactive communication, borrowers can optimize the benefits offered by Buddy Loans and work towards a more secure financial future.
At Debt Movement we provide professional debt guidance and solutions that help you move out of debt. We offer non-judgemental financial guidance to relieve the burden of financial strain and offer support on your journey to financial freedom. Request a free call back today.
