3 Great alternatives to Payday Loan for the unemployed Individuals

Today, the unemployment rate has fallen down steadily and is at its lowest presently, instilling a ray of hope in the minds of many. But let’s face the bitter reality – there are still countless job seekers, whose innumerable job applications have turned out to be unsuccessful. Such unemployed people may want to benefit from a payday loan so as to meet the day to day expenses under adverse circumstances and personal emergencies. Regrettably, they have bad news at the payday loan office too, as one should have a job to avail such loans.

Among the most important prerequisites to avail a payday loan, regular employment is the topmost criteria and almost all loan providing companies expect this basic requirement from the applicants. If the applicant is unable to show a regular income flow from a reliable source, then the company would definitely question the ability of the person to repay the loan amount.

Such unemployed people have other options to consider and they can hit upon these with just a little bit of research work to find out what the choices are. Here are 3 alternatives to payday loan for the unemployed individuals.

Alternative 1 The first thing to be done by an unemployed person is to file a claim with the Unemployment Insurance department. This has to be done instantly as the payments will start when the claim is filed and not any time sooner. Most of the filing of paper work can be done online, though the individual will have to attend a short telephonic interview to discuss about the proper circumstances of their removal from office and the reason for looking out for unemployment benefits. After the person’s eligibility for unemployment is ascertained, they will have the assurance of benefits for either one year or till the time they are reemployed. This amount may be trivial, but it will be of some help at least when you don’t have the choice of opting for payday loan as well.

Alternative 2 While the first alternative would fetch you something, the second option would be to lower your anticipations and be ready for a slightly lower level job than what you were serving previously. With the increasing competition in the market, employers are also getting very choosy. For instance, if you have the required ten years of relevant experience for a particular job, your experience may be surpassed by another person with eleven years of the working experience, yet lower salary demands. So, if you’ve stayed unemployed for quite a few months already, then you might as well consider applying for lower level jobs in your field. While working, you can continue your search for a job relevant to suit your experience and profile. This can alleviate the financial stress to a good extent.

Alternative 3 As we’™ve seen in the earlier section, payday loans are generally not granted to unemployed individuals. However, as there are exceptions in every rule, the exception here is that the individual may have chances of getting a payday loan if a reliable guarantor is ready to take over the debt, in case the person fails to repay. The first two alternatives may not seem to be ideal, but they can definitely ease down the financial stress during the period of unemployment to some extent. The third alternative may be a great option to be considered, and may not be viable for everyone, but if you do happen to have a blood relative who is willing to sign as a guarantor then it can be the best bet for you. However, you must pay back your loan to uphold the trust with the guarantor at all costs.

Author Bio – Adrian is a personal finance advisor who has helped hundreds of people in making smart investments, and making the most out of their hard earned money with minimal risk. He also provides advisory on availing and managing payday loans efficiently.