With unemployment, incessant cash crunch is inevitable. While the key source of income in your life vanishes, the list of expenses remains unending. With a high debt to income ratio, the challenge of repaying loan instalments, card balances and household bills is unnerving. Whether you seek loans for unemployed people on benefits or use your savings, it would not be a cakewalk to cope with unemployment.
So let’s explore some of the handy tips to arrange for safe unemployed loans and cope with shortage of resources in the most dignified way.
- Have a budget and Save
Being unemployed it would be wise to build a budget. You should strictly follow your plan and save as much as possible. The focus should be on cutting down the outflows. Delay all the expenses as far as possible. With lack of salary, it would be convenient to use credit card but you should be careful to not build enormous bills. Carrying forward balance on card would attract high interest and you should not waste your hard earned income on interest component. Instead use card to make the best use of cash back, discounts and offers.
While buying grocery, choose brands on discount and stick to limited items only. Cutting down on additional sauces and products would save you enough for the month. Likewise you can save enough on car fuel by opting for bicycle for short distances.
- Know how much you want
The type of loan you seek for unemployed would depend entirely on your previous history and credit requirements. If you have staggering financial obligations every month, it would be advisable to apply for long term loans for bad credit as small cash loans would not solve your credit issues. Short term loans are ideal for temporary glitches Although your financial issues are temporary, you need to take right steps to not ruin your credit worth. Do not seek loan for more than what you require.
- Search for an authorised loan broker
With lack of income, popular lenders would not be interested in extending loan to you. You would need to contact private lenders. However there are several loan sharks active in the market and they use unscrupulous terms for recovering unpaid loans. You should stay away from them. Thus the safest way to borrow for unemployed loans would be to look for authorised loan brokers. They work under FCA’s guidelines and their policies are meant to favour the customers. They offer free broking advice.
- Delayed repayment
A broker can help you opt for delayed repayment with unemployed loan. The loan repayment would begin after a couple of months or when you get a new job. This way the stress of arranging loan instalment diminishes. They can also help you request your current lender to extend the repayment date for your loan.
- Instalment loans
Always opt for instalment loans instead of cash loans such as payday loans. For, the latter are expensive loans which are extended for a very short period of time. When you opt for instalment loans the pressure of repayment eases down to a great extent.
- Credit history
With ease of repayment you can successfully repay the loan and build good credit history. The good history makes you eligible for more credit after the maturity of the loan.
- Read details
You are not bound to follow the broker’s advice. Always read the details carefully and make a learned decision. Ensure that there are no hidden charges and evaluate the cost of loan before signing the deal.
With all these tips in minds, you can surely avail a safe deal for unemployed and that too at your own terms.