There are a number of loans for unemployed people on benefits out there, you just have to know what to look for. It can seem like you simply have no options when it comes to finance whilst being on benefits, especially if you have a poor credit history. The simple fact is that the majority of bank and finance companies do not want the risk that people in your position present them with. Even if your regular welfare income can cover a personal loan, the financiers recognise that occasionally things come up that can cause you to miss a payment, and then a downward spiral starts to happen. However, the government and charity groups have teamed up with specialist financial institutions to provide financial products that are suited to people on low income benefits and who do have a poor credit rating. Often these are subject to high rates and low principals but they do give you an option you might not otherwise have. In this article we take a look at these option that are available to you so that you can choose the best one.
Guaranteed Consolidation Loans (Government Supported) – Loans For Unemployed People On Benefits
In the UK, the government has recognised that debt management is the major factor in most welfare recipient’s financial situation. Consolidation loans have been around for a long time, they are normally used by people who have a lot of smaller debts as a way of making everything easier to manage. This same financial product has been extended to low income people to help them consolidate their personal loans into one single debt repayment. Not only does this make things easier to manage but it also reduces the overall amount of fees that you have to pay, since you only have to pay the one set of fees. Often, the interest rate will be higher on the consolidation loan, but over time you usually end up saving more anyway because the reduction in fees is so significant. Make sure when applying for a consolidation loan while on benefits you ask for one that is tailored to low income people or for a government insured loan (which has a low interest rate and is only available to welfare recipients).
Quick Cash Payday Loans (Cash Advance Loans) – Loans For Unemployed People On Benefits
A popular choice of finance for people with poor credit histories are fast cash payday loans for unemployed people, or cash advance loans. You can find fast cash payday loans online and offline through various specialist lenders, and they are usually available within twenty four to fort eight hours. These quick small cash loans are unique because the lender does not even need to see your credit history, it is irrelevant to the way the loan is handled. Instead your regular income is assessed, and this can include a welfare benefits cheque. As such, these are very easy to get in a short period of time, making them a great choice for emergencies. The only downside to this particular type of loan is that they can have a very high interest rate and low principal loan amounts (depending on how much your regular income is). However, if you need fast cash today then this is your best option.
Welfare Benefits Advance Payments – Loans For Unemployed People On Benefits
One of the best ways that you can receive lump sum financing is through your welfare benefits office themselves. You may not be aware of it but most people in receipt of benefits are able to get an advance payment totalling a few pay packets in one go. This doesn’t stop you from getting future payments, either, you just pay off a portion of the advance each pay period for the next few months. This is a great option around Christmas, birthdays, or just whenever you need a larger sum of money in one go. The best part of this is that there are simply no interest rates to repay, it’s a free loan that you can take again once you have paid it off. Welfare advanced payments are definitely worth considering if you you’re looking for a quick cash loan for people on benefits
Advice on Credit Cards – Loans For Unemployed People On Benefits
Credit cards represent the reason for many people’s financial issues in the first place. This is for good reason too as they have the real potential to spiral out of control. However, this doesn’t mean that you should avoid them entirely as they represent a real source of emergency funding when you need it. And if you limit yourself to using it only for emergencies and paying it off within a month then you can even have them be a way of interest free finance that also improves your credit score. Credit cards are definitely worth considering if you’re looking for loans for unemployed people on benefits.