How Much Disposable Income Do You Have?

How Much Disposable Income Do You Have?

When we are children growing up, we reach a certain age, an age where we really cannot go out and get a job, and yet an age where we need some money; more than just asking our parents to pay for everything, every time.

We need to learn a little responsibility with and about money, and this usually begins by our parents giving us an allowance or “pocket money”.

As to what age this giving of cash begins, and how much is given, can vary among households and families, but even if it is just a few quid a week, it is to help teach us about money at a young age.

There also is the teaching of the value of money, usually this begins with the exchange of cash for doing some chore/work.

For some it may be cleaning their room, taking the rubbish out, cleaning the garden, doing the dishes, or a combination of them all. You do your chores, you get your allowance.

Of course when we are younger if we are given a fiver or £10, we hav no bills to pay with it, the money is ours to spend as we see fit.

If we want to spend it on fast food with our friends, we can do so. If we wish to use the money to go to see a film or show, that is our choice.

For larger purchases we may need to save up a few weeks or months of our pocket money to make the purchase. But the point is, the money is ours to spend, it is disposable money.

What is Disposable Income?

The definition of disposable income is generally thought to be the money you have left over after paying all your bills and expenses each month.

It is also called discretionary income.

This is money that you have left after paying your rent/mortgage, council tax, gas and electricity, insurances, food, clothing (although this can be seen as part of your disposable income), and any loans or credit cards.

After you pay all the bills and expenses, what money you have left for going out, buying music or books, meal out, etc, is what you may choose to spend your disposable income on.

How much we may have each month for disposable income can vary among households, and can vary each month according to how we are paid, and also each month may bring about extra expenses.

Extra expenses such as gifts for friends and family, and holidays such as Christmas or holidays away.

So sit down, put pen to paper and calculate your disposable income…..I’ll wait.

How much disposable income do you have?

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.