As a pensioner, you are likely living on a restrictive fixed income, making it hard to deal with financial hardships when the unexpected happens. However, there are options for getting financial help that doesn’t involve taking on large debt, tapping into home equity or cashing in investments. To help you understand your options for getting assistance when you need it, here are some programs to explore first.
Many pensioners qualify for aid beyond their pension payments. Options for additional rental help and energy supplements can contribute to making traditional household expenses more manageable every month. These benefits are received monthly, and you may qualify for long-term help. This means you can direct less of your cash to things like rent and utilities, giving you more financial options.
In some cases, these programs require you live in specific communities or are only available to those in certain situations, like being a carer for an individual with a disability. However, if you do qualify, then the payments can begin almost immediately.
Some local governments also offer no interest loan schemes for low-income individuals, including pensioners. Often you have to meet income requirements and demonstrate a willingness and ability to repay the funds within standard terms. There is no guarantee that you will qualify, but it is generally wise to consider no interest loan options before considering traditional lenders. Check out the aged pension and look into concession cards.
Charities and Nonprofits
Almost every community has a few charity or nonprofit organisations that help those in financial need, especially during emergencies. They can offer cash assistance for expenses like housing payments and utilities, as well as assist with food and transportation.
Each organisation controls the qualifications for those seeking help. Often, a person or family must be considered low-income and must demonstrate significant financial hardship. The use of the funds may also be restricted to certain activities, and they may require that any cash payments be directed to a specific obligation, such as a rental payment.
Many charities and nonprofits have limited funds, so they provide assistance on a first come, first serve basis. Additionally, these are rarely intended to be long-term solutions. Instead, financial aid may be provided in conjunction with a specific event and, once that situation has passed, no further help will be available without an additional proof of need.
Loans may also be available to pensioners looking for additional funds. Often, you must meet specific requirements as set by the lender, and be seen as reasonably capable of meeting the repayment requirements.
In some cases, you may have options through traditional banks and credit unions, especially if you have a strong relationship with your primary bank. Otherwise, you can explore options from lenders who specialise in loan products for pensioners or people on benefits. It is important to note that loans from specialty lenders typically come with higher interest rates, so it is vital to see how the repayment terms fit into your long-term picture before deciding to apply.
As you can see, there are options for pensioners that require financial assistance. If you find yourself in need, explore the options above, and see if you can locate a solution that is right for you.