What are the best loan options for people on Centrelink Benefits?

ID-10041670Let’s start by looking at the loan option that is unaffordable and could but you in a worst position. Over the last couple of years there has been explosion of payday lenders in the Australian market. Since their introduction into the market they have been under heavy scrutiny for numerous issues.

Both debt charities and financial counsellors have voiced their concerns and consider these services as debt traps, which prey on the vulnerable – young adults, students, handicapped, gamblers and desperate people who find themselves in financial despair.

Government regulators have been flooded with complaints and are working on ways to clean up the industry. Some issues include high interest rates, fees and approval processes or criteria.

Note that these types of loans can go under the guise of micro loans, instant loans, bad credit loans, small personal loans, quick cash, low income loans, centrelink loans and others.

Payday loan providers do claim that they simply fill the gap in the personal loan market for those who are unable to qualify for loans through mainstream lenders such as banks.

Better loan options for people on Centrelink include:

Many low income earners and people on Centrelink apply for payday loans because they feel their options are limited and are unsure of where to go to get financial assistance. Here is a list of non-profits, charities and government services that are available with financial assistance which can include personal loans.

Fair Loans – They are a not for profit that are partnered with the NAB and are very community focused and strive to provide Australians with an alternative credit solutions to payday lenders.

Financial Counselling Australia – If you find yourself in a serious financial situation and are unsure of what to do – Speaking to a free financial counsellor can go a long way in understanding your options and piecing together a plan to get back in control of your finances

Advanced Payment – For those who are already receiving Centrelink benefits, Advanced Payments allow you to receive a portion of your regular payment in advance. This is a great alternative to taking out a loan.

Good Shepherd Microfinance – They are a national community organisation that has also partnered with the NAB and provide both low interest and no interest loans that can go as high as $3000. Their two main programs are StepUp and NILS.

Being informed on loan products will keep you from plunging further into debt and the issues that may arise from serious financial issues. Working with organisations that put you first is important in staying on top of your finances without getting into financial trouble.

Image courtesy of Photostock / FreeDigitalPhotos.net

This Post Has One Comment

  1. Hi im currently residing in a woman’s shelter
    I need a low income loan of 600 to help pay two weeks rent to get my own house who is the best company to go with

Leave a Reply

Your email address will not be published. Required fields are marked *