Jobs have been lost at an incredible rate during the continuing recession. Lay-offs and closed companies have cost the country jobs that probably are not coming back. Any new jobs created seem to be part-time, minimum wage jobs. This does not make it easy for people who have good educations and have many years of experience. They are unemployed and can not understand why. In addition to the ego shredding nature of such unemployment, the well educated person finds himself or herself in the throes of financial ruin. Severance pay, if they received any, runs out quickly but the bills keep arriving in the mail. Being out of work and broke is not an ideal situation, yet it is the way of life in America today. If you are one of the millions in this position, would you not love to find a loan that can help you tide it over until your financial situation turns around?
If you asked people around you about the possibility of getting an unsecured loan while unemployed, you will very likely find that no one believes it is possible. After all, you do not have a job. You have no steady income. You have no collateral to put up against the loan. You are in a position where it does not look like you will be able to pay back the loan. Who would lend money to you? If you look around, there are plenty of lenders who will approve your loan. Lenders exist who will help you get back on your feet financially in spite of your employment status.
Unsecured Loan Background
Any loan that does not have collateral is considered unsecured. without putting them up as collateral, you do not risk your personal assets should you forfeit on the loan. This means you are not risking your house or your car because of the unsecured loan. It is not a perfect world. Unsecured loans carry higher rates of interest. In fact, they are much higher than loans that have collateral.
Unsecured personal loans are viable even if you chose to not risk your personal property or home. Unsecured personal loans can be for amounts as small as $1,000. They can also be for larger amounts up to $25,000. It all depends upon your financial circumstances and the criteria that you and the lender discuss. Unsecured loans can be paid back over 6 months or up to ten years.
What About Bad Credit?
Your financial hole may not just stop with unemployment. It may well be that your credit score has crashed also. do not assume that bad credit will push you out of the market for an unsecured loan. Lenders who specialize in unsecured personal loans are also in the business of helping you remain solvent. It does not help them to give you money that you cannot pay back. Bankruptcy is not a deterrent when it comes to unsecured personal loans. but you have to know where to look for the lenders. Because of your bad credit and your lack of collateral, you will be a bigger risk to the lender than someone with either collateral or a higher credit score. This does not force you out of the lending market, but it will mean you will be paying a higher interest rate.
When you apply for an unemployment loan, the lender generally will not ask you what you want the money for. While you are probably going to use the money to live on, you can actually do what you want with the loan money. You may choose to consolidate your credit card debt, or pay medical bills. You could use the money to purchase a vehicle to use to help you hunt for a new job. Just make sure you use the money wisely and remember you will have to pay it back.
You Must Be Responsible
You are probably feeling better now that you know you have options when it comes to personal unsecured loans while unemployed. But this does not give you permission to take the money and go on an expensive vacation. You should use the money to be the lifesaver that you want and need.
This is a loan and with any loans you must act responsibly with how you use the money. You must make sure you make a plan to pay it back and act on your repayment plan.