Sometimes you are amid financial breakdown for no fault of yours. From last decade unprecedented shutdowns owing to automation and recession has gobbled up hundreds and thousands of jobs worldwide and in the UK itself. If you are the latest victim, considering loans for unemployed people is more than a necessity for you.
The sudden job loss nullifies the inflows for the month, however the list of expenses is constant and you cannot survive on savings for long. It is practically impossible to pronounce when you would find the new job. Without a delay, you should have a financial plan to follow.
Avail unemployed benefits
As a first step, you should apply for unemployed benefits and allowance from the government. Within two to three weeks a benefits cheque would be directed to your bank account. As you are recognized for the employment benefits, it would become easy to get eligible for loans for unemployed people on benefits.
With the benefits cheque in your bank account, your credit worth would also improve. However conventional lenders would not extend loans until you co apply with a high worth applicants. They would charge a very high interest rate and you need to search for private lenders who are willing to offer credit to people with not so perfect credit score.
Conducting the loan search.
It would not be easy to go directly to a lender. For, every time you contact a lender, a footprint would be made on your report. You would practically approach a single lender at a time. Each rejection would hurt the score and it would get even more difficult to get the application approved. Besides, a lot of loan sharks are also active in the market and you should be really cautious about finding the legitimate lender for the purpose.
Being an unemployed the pressure of finding the right deal is already high. You should thus look for convenient options to locate the right lender. You can consider using a broking service.
Brokers are mediators between borrowers and lenders. They search for cheap loans in the market for free of cost. Whether you seek loan with credit issues or want to refinance a loan, the brokers can help you reach the deals which would not be easier for an individual to crack.
Things to keep in mind
However keep following things in your mind when you contact a broker:
- Look only for Installment loans UK. Raising cash advance with unemployment is not recommended as it would add an unnecessary pressure to arrange for repayment within a few days. While the instalments ease off the repayment burden to a great extent.
- Contact authorised brokers only. The FCA is a financial watchdog in the UK and the lenders and brokers operating in the market need to be authorised before serving the people. With an authorised broker by your side, you could be rest assured by the authenticity of the deal.
- Borrow the required amount only. You should never borrow more than required as the burden of repayment should be limited.
- Do not use all of your savings when calculating the instalment affordability. Have a complete repayment plan. The broker can guide you on this. You can also opt for delayed repayment according to your credit health.
While using broking advice, you are free to choose or reject the suggestion. There is no obligation to follow the advice.
Thus, unemployment need not be a reason to bring a financial low in your life. Using all these tips you can plan the things and wait for the bright days ahead.