With limited personal loan options for individuals or families on welfare, many are in the dark on where to turn for help. Especially for emergencies that require immediate cash. There are a few options that are available and the loan amounts will come at different costs and speeds of transfer. Payday loans are an option but for those who are under financial duress, there are better money options.
As there are so many different circumstances on why a person may be on welfare or in what capacity they rely on welfare, so will be the outcome of obtaining funds. Risk, based on background will have a large bearing on approval from different lenders.
The good news is that there are certain opportunities whose lending criteria are extremely flexible. They are not as concerned about bad credit, assets and employment history. Approval is more geared towards providing proof of a steady income source, which shows one has the means to make repayments and service the loan.
Below are some of the top forms of accessing money while being on welfare.
Government Benefits – There are many people who don’t think about taking advantage of benefits as they feel embarrassed. Benefits are there to support and help people in their time of need and as a tax payer you are certainly entitled to them. There are a huge range of benefit types from actual loans, bills support, transportation assistance and more. (speed of help: quick to moderate)
Special Bank Programs – Certain banks do provide specialised loans for low income earners within the communities they operate in. These are generally small loans between $200 – $3000 and will come with a very low or now interest rate or fees in some cases. Ask your local bank if they provide such a product. (speed of loan: moderate)
Non-For-Profits – Similar to the specialised loans that some banks may offer. There are some great non-for-profit organisations that also provided emergency funds for low income earners and welfare recipients. Check for these types of organisations at your local community centres, churches or town hall. (speed of loan: moderate)
Secure Loans – Depending on if you have something to secure across a loan, this is another option. Typical security items include vehicles, machinery and in some cases a home. (speed of loan: moderate)
Charities/Church – Most communities have a church or local community centre which can provide all sorts of assistance for those who are having issues with finances or other serious issues. In addition, they generally have great partnerships with other non-profit organisations to help people handle most situations.
What other types of responsible financial assistance can you recommend?