Are you among the thousands that are now unemployed because of the financial crisis or other reasons? If so, you are not alone. There have been hundreds of big companies that have either gone under or downsized the number of employees that they retain due to the financial crisis that is affecting the entire globe.
Finding a suitable job in the job market that is lying in ruins from a failing economy is often tough, and for those that qualify for unemployment compensation – the amount is often too small to meet your needs. You need money now to help you through the hard months ahead, and an unemployment loan can provide the needed cash that can keep you from losing your home or defaulting on other debts, as well as provide money for you to live on and paying living expenses during your search for a new job.
Getting The Money You Need Now
An unemployment loan is usually a secured loan. Most borrowers of unemployment loans place their home or automobile up for collateral to secure the loan. Doing so will undoubtedly make the rate of interest that you are charged for your unemployment loan lower than taking out the unsecured version of this type of loan. However, for those borrowers who do not wish to risk losing their home or other property, unsecured unemployment loans are also available. You will pay higher interest, but you will not be putting your property on the line if you should be unable to repay the lender.
To improve your chances of receiving an unsecured unemployment loan, you may be asked to apply alongside a cosigner who has good credit and is willing to stand good for the payment if you do not fulfill the terms of your loan agreement. Having a cosigner is not always necessary, however, but is a good idea to make sure that you are approved.
Get Approved For Up To $25,000 Today
You can ask for any amount that you need when you take out your unemployment loan. A good idea to determine the amount you need is to make a budget of basic living expenses for a six month period – and then add a padding of 25%. This will ensure that you have enough money to last you at least for necessities until you can get another job. Most unemployment loans begin at around $2000 and go up to $25,000 or more, depending on your credit history and anticipated ability to repay the lender. Be certain to borrow only what you truly need as this is a debt that will be facing you when you return to work. You do not want to overextend yourself by adding on more debt that you can repay comfortably.
With most lenders, you can defer payment for several months on your unemployment loan. However, if at all possible, begin repaying the lender immediately. This will reduce the amount of time that you take paying off your unemployment loan, and also cost you less in interest charges.
Online Savings On Unemployment Loans
Online lenders typically offer great rates on unemployment loans due to stiff competition on the Internet between financial institutions and banks. Further, you will be able to apply from the privacy and comfort of your own home and receive your money electronically delivered in minutes to your bank account.