Loans and other financial options for the unemployed
Financial hardships arising from being unemployed can be avoided by applying for specific loans for unemployed or seeking federal unemployment benefits. The government also offers loans to individuals as a means of financial assistance. The loan, per usual, has to be repaid its interest. Applying for unemployment benefits or worker’s compensation has its own set of stipulations and the eligibility criteria are determined by state law.
Procuring an unemployment loan might prove quicker in many cases. Financial assistance during this time of crisis may come from various sources, such as:
Friends and family Shout out for help, just do
Using credit cards to get a cash advance – Albeit being a quick way to get cash, the interest rate is usually high.
Borrowing against your home insurance – If you have decent real estate equity and some form of income, like unemployment benefit, this may prove to be a viable option. This loan is like having a revolving credit card debt. It is usually mid to long term loan.
Borrowing against your life insurance – If your life insurance policy has a provision, you might be allowed to borrow a small sum of money against it.
Applying for a loan with co-signer – A friend or family member with a good credit score as a co-signer, might up the probability of you procuring a loan.
Car title loans – This is another quick option for securing cash if the current value of your car is more than its current debt. The car title loan lender holds the title of the car till the loan is repaid in full.
Debt consolidation loans – They provide an opportunity to the unemployed person to pay off their debts and to minimize monthly payment.
Pawnbroker – If you have absolutely no income, then pawning off your valuable belongings might be best or only option. Any item that you bring in is appraised by the pawnbroker, and an appropriate amount of money is paid for it. The appraisal value is usually a lot less than the item’s original value. Upon repayment of the loan in full along with the interest, the item is returned to you. In the case of default, the item is kept by the pawnbroker. Availing money from a pawnbroker does not affect your credit.
Payday loans – These are short term loans requiring you to repay the loan amount with interest on the next pay day. Any source of regular income, like paychecks, alimony, disability is accepted by the lenders in lieu of the loan amount.
Always explore various options before zeroing down on the one that suits your current needs.