There are rarely situations in which having debts is not associated with the desire to pay them off as soon as possible. A solution that would help to get rid of them is not obvious and is never 100% certain. Sooner or later an idea will appear to pay off debts with another loan. However, is this not an impossible situation, given that it can be difficult for indebted people to find a company that will grant loans to debtors, and then – meet the demands of such companies?
A secured loan is obviously risky, especially if it concerns real estate. A better option is to secure the car. However, you have to be aware that not every car will of course be accepted as collateral for the loan. The amounts paid out are only a fraction of the value of the vehicle, and this depends on how the valuation will be made.
Moto-loan offers its customers up to USD 50,000, equivalent to 80% of the car’s value, which means that in order to take out a maximum loan, the car must be worth over USD 60,000. The advantage, however, is that this amount can be repaid in 60 monthly installments, and the car can still be used by the customer.
The guarantor guarantees the loan company that even if the borrower runs away from repayment, the installments will continue to be repaid. In Orange Money, to receive USD 25,000, the borrower does not have to show a good credit history and may have debts. However, this does not apply to the guarantor, who must be able to finance the repayment of installments financially and additionally own a property.
Remember – the guarantor should be a trusted person. This is necessary so that neither side of the transaction is cheated. On the one hand, he should be sure that he is safe and will not be held accountable. On the other hand – the loan is paid to the account of the guarantor, not the client, so this solution is also a certain inconvenience for the borrower.
Love explicitly declares that people in debt can also apply for a loan. However, there is a condition – such people must be employed and have earnings appropriate to the loan amount (read: high). The problem may be that it is payday loan, i.e. a loan that is more expensive for a household budget than an installment loan. In addition, you have to reckon with the fact that we will borrow USD 2,500 and 5,000 there, respectively, for the first and subsequent loans. However, if the debt is not much and a one-time loan is able to cover it, then Love will be an excellent solution.