Loans offered to Borrowers on Unemployment Benefits

For people who are on unemployment benefits, gaining access to credit facilities on either short-term or a long-term basis can be a very tough task. In the United Kingdom, many credit card companies require applicants to maintain a minimum income level of £30,000 annually to gain approval of their applications. A large group of people in this country are tired of pursuing lending institutions on high streets or payday lenders, only to be denied because they are claiming unemployment benefits.

Borrowers seeking short-term loans while claiming unemployment benefits could apply at a lender who specialises in these types of loans such as This place is willing to offer short-term loans to people who are on benefits. To begin with, there is a significant demand for accessing credit on a short-term basis among people who are unemployed. They have extreme difficulty in accessing credit with traditional means. Unexpected expenses will arise even for people who are unemployed and who are on benefits. This large group of individuals also needs access to lenders who can extend loans to them.

It has to be remembered that benefit cheques are much smaller in amounts than the pay cheques, but they still are a basis of regular cash flow. This is what the lenders are seeking when they offer a loan. As long as the deposits in the borrower's bank account are regular, it is still enough for the lenders to consider sanctioning loans of a manageable size. Hence, payday loans which are offered here to people who are on unemployment benefits are lower than what is offered to people who are actively employed. This decision is taken purely on statistical grounds and is not meant to discriminate against those people who are on benefits. Even though many people are on unemployment benefits for valid and legitimate reasons, they are however considered riskier than those who are actively employed when the default rate is taken into consideration.

Easy Loans for People who are on Benefits

There are people on unemployment benefits who are worried about getting accepted for credit when they apply for loans. Such kinds of people can look here when they are finding it tough to borrow money on the high streets from banks and various lenders. People on unemployment benefits may have bad credit rating, but their loan applications would be considered here, and every application would be assessed based on personal financial circumstances and not just on their credit scores. Short term loans can be arranged for people who are on unemployment benefits. A credit check would be run on all applicants, and their income and outgoings would be assessed to ensure that they can afford repayments before loan amounts are offered to them. It is understood that people who may be unemployed would also need that extra cash to tide them over for the rest of the month in case of sudden emergency expenses. It is also accepted that it may take some time for these people to find the right jobs and it is necessary to support such people while they are in the processing of getting set up. They deserve to take care of those immediate emergency purchases that may arise when they are least expected.

How much can be borrowed by people who are on benefits and what is required on their loan application?

People who are claiming unemployment benefits may be able to borrow amounts here ranging anywhere from £200 to £1750 for a period ranging from three to twelve months at an Annual Percentage Rate of 1421%. The applicants have to be over eighteen years of age. They should be receiving a minimum of £400 every month from their benefit allowance. All applicants should be residents of the United Kingdom and must have lived in the country for at least six months.

Harnessing And Practicing Money Management

Money management is not exactly every person’s forte. For most of us, our wallets seem to have holes that hemorrhage every penny put inside. In spite of the fact that these skills do not come naturally, their importance cannot be emphasized enough. Whether you are a young student with no bills to pay or a family breadwinner with several mouths to feed, there is no denying the fact that you can and will benefit from money management skills. Below are a few tips and guidelines that should help you understand and practice money management for a healthy financial existence. 

Top Tips For Effective Money Management

1. Make a budget and stick to it

One of the best ways to manage your finances is using a budget. Most people waste money that isn’t 'committed’ 
to some responsibility. So after you pay rent and all your bills, you probably end up overspending the rest on completely unnecessary and unjustifiable expenses. Making a budget and sticking to it ensures that every coin is accounted for and therefore nothing is wasted. It is important to understand that budgeting is not a punishment. If you wish, you could include a few treats here and there as well as miscellaneous funds for the occasional splurge. Just make sure to exercise moderation and always try your best to save money where you can. 

2. Priority over preference
Another secret to successful money management is putting priorities over preferences. In other words, you should be spending more on needs than wants. This ensures that every coin spent is put to good use for your benefit and for the benefit of those dependent on you. If after the basic needs are taken care of there is some left, you may then choose to indulge in some luxury if you wish. 

3. Short term loans instead of long-term loans

Many people do not realize this but short-term loans in the UK cost you less than long-term loans. With the latter, time allows interest to increase costing you more than you might be comfortable with. Short-term loans, on the other hand, are more affordable with the speedy payment ensuring that interest doesn’t accumulate so much. Payday loans are some of the most popular and with their convenience and affordability; it is not so hard to see why. 

4. Fixed accounting

Another great money management tip is working with fixed accounts. These are perfect for people who find self-control particularly challenging when it comes to money. The accounts allow you to deposit money whenever you want but you can only withdraw at specific times or after following certain procedures.

5. Seek professional guidance and assistance

Finally, getting a professional to help is a great way to harness and practice money management skills. The 
Stepchange Debt Charity is one of the best firms in the UK in this case. The non-profit organization aims to help individuals by advising them on different money matters from debt management to proper budgeting. The company is endorsed and operates with the permission of the UK Government further supporting its legitimacy. This and other firms like it exist to help you learn how to handle your financial affairs for the sake of your present and future. 

Bottom line

After all, is said and done, there is no denying the fact that money management is not rocket science. However hard it might seem from a psychological point of view, pretty much anyone can do it. The most important thing is setting your priorities straight and exercising self-control. The tips above should really help you save the extra coin here and there. Opting for short-term loans, in particular, will help you enjoy financial freedom without putting your financial future at risk. With things like payday loans on offer, you get to respond to financial emergencies without spending the rest of your life paying for it. 

In conclusion, if you are trying to find a way to help make the most of your financial situation, try your best to learn the art of money management. I can assure you that you will not regret it.