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Loans On Benefits For People With Bad Credit
What do you think about when you hear the word “welfare”? When it comes to welfare, most people think that they are the ones living in small, dirty houses, with barely any food to survive. Almost everyone refers to “the poor” but the truth is, it’s just a stereotyping. There are many people who benefit from welfare benefits and those people are not technically deprived.
This article will talk about the four types of people who use government assistance to stretch the money they have. This will also include the other financial options that could help them when they are under financial dilemma, including loans on benefits with poor credit.
Who Uses Welfare Benefits
- Individuals Experiencing Temporary Emergency
Emergencies such as sudden illness or a company unexpectedly shutting down happen all the time, thus, affecting many people. It’s a devastating scenario if the person affected has no savings or is the one supporting his entire family. Luckily, those who have lost their job or become ill can take advantage of welfare benefits.
- Elderly And Disabled
Aging and disability make it hard to produce money especially when the person can barely stand. However, this does not exempt them from having financial trouble. But still, there are ways on how they can have the cash they need such as borrowing from welfare or loans for bad credit on benefits.
- Single Parents
Being alone doesn’t mean spending less; what more if you have children. Most parents are struggling because of the expenses they have on their child and the same thing is happening to those who are raising their child alone, or even worse. Nevertheless, there are financial options to choose from.
- Victims Of Calamities
Typhoons, floods, earthquakes, and other calamities – man-made or not – take place when everyone least expects it. Amidst all the preparation, one could suffer badly because of this. Fortunately, there are a lot of financial alternatives available to help the victims survive and stand up again.
Other Financial Options
While welfare benefits are extremely helpful to those who receive it, there are other options to choose from. Emergency/crisis loans are one of the most used alternatives as this can be used by almost everybody. However, the basic requirements should be fulfilled in order for the loan to be granted. One of the best features that this loan has is that it is designed for almost everyone. This means that even if the borrower has bad credit or unemployed, he can still enjoy the benefits of these loans for bad credit and on benefits.
On the other hand, there are credit unions and banks. To start borrowing from these establishments, that debtor may call a customer service representative for assistance. They can ask what kinds of loans are available to them and the criteria that should be met. Those who have good credit rating and good saver have higher chance to be granted.
Another option is the car title loan, which is available to those who own a car. As long as the car’s loan is settled and the title is clean, the borrower can get the approval he needs. However, this loan is risky since the lender can acquire the property in the event of default.
Representative example: £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)