While there is a lot to be said for “putting something away for a rainy day”, it is just not possible in the current economic climate. People are living from wage to wage and this means that every penny that comes into a family or household is very likely rolling back out again. If things go to plan, this is fine but as we all know, it is a rare month when everything goes to plan. This means having some leeway when it comes to finances makes sense but when you just don’t have enough money to take care of all the bills you definitely have and some of the bills you may have, it is always best to pay the tangible bills.

However, when an unexpected bill comes in, what can you do? For a while, payday loans were being trumpeted as the solution for these unexpected bills but in reality, this was only likely to make things worse. Having access to money at short notice is a positive thing but the APR associated with payday loans means you would end up paying far too much money, and in all likelihood, most people would struggle to pay off the bill at the end of the month.

Don’t roll over debt payments

If people have to take out a loan to cover them with an unexpected bill, adding another payment to their next month’s expenses may just prolong the pain and before too long, most people find themselves rolling over debts and this can delay the issue and make it a bigger problem. If this trend continues, at some point, the person will find that they cannot make the payments and this is when the trouble begins. This means you should always look to avoid payday loans as a means of paying off unexpected bills.

There is help on offer though and unexpected bills and guarantor loans can go hand in hand. If you have someone willing to vouch for you and serve as a guarantor, you’ll find that you can obtain a much more attractive rate of APR. This reduces the amount of money that you have to pay back, which will hopefully help you to stay within budget. You should also find that as a guarantor loan can be paid back over a longer period of time, the pressure to pay the loan isn’t as much.

In an ideal world, you’d have money put aside to help you deal with unexpected bills but if you need assistance, guarantor loans are of merit.