Monday 14 July 2014

Loans for People on Benefits - Join Credit Unions (Part 5 of 20)

This Post is Part 5 of the 20 Part Mini Series on Loans for people on benefits. One of the most frequent question I get asked on the Millionaires Giving Money Blog is - Do Loans for people on benefits really exist? After responding to a handful of these emails I was inspired to share 20 loan ideas for people on benefits. These ideas are also relevant to unemployed people, people on disability and those people who have really bad credit. Before you take out any loan you should consider the loan amount and the amount you are going to repay. You should also check the APR interest rate and try to reduce this as much as you can. Always consider the loan repayment monthly amount and fill out a income and expenses for to see if you can afford the repayments on the loan without getting into hardship. So now without further ADO here is IDEA 5 of 20 on loans for people on benefits.

Loans for People on Benefits: IDEA 5: Join a Credit Union

Credit Unions are financial organisations which are run by members for the benefit of members. Most Credit Unions are not run for profit and are completely devoted to offering financial solutions to its members who are in hardship. To get started you need to find a Credit Union and become a member. You need to show your income and expenses financial statement to show that you are living within your means and are saving every month. Once you've proven that you can manage your money effectively you can apply for a credit union loans.

Credit Union Loans are much cheaper than Pay Day loans because the Credit Unions are not in business to take a profit. Credit unions just match lenders and borrowers and charge a small administration fee. Using credit Unions you can apply for loans at reasonable rates and then pay them off slowly over a period of time that suits you. If you do get into trouble the Credit Unions help to resolve the problems so you get enough time to get back on your feet. 

Before you take out a credit union loans for people on benefits always look to increase your income and reduce your outgoings so it will improve your financial statement. The better your financial circumstances the better your chances of being approved of a loan. Credit Unions are run for members by members so you will be in good company as these members will understand if you do begin to experience financial hardship. As always determine whether you really need the money and try to negotiate a low APR so you pay back less in interest. Always fill out your financial income and expenses form accurately to find out whether you can really afford the loan.  

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