Centrelink Money: Where to get extra help

Many Australians experience financial hardship and don’t always know where to go to get help. Fortunately, in Australia we have access to a variety of finance programs from the government and non-profits to fall back on in our time of need. Centrelink is the most popular option as it offers a variety of payments and benefits provided by the Australian Department of Human Services. In instances where Centrelink isn’t enough, there are other non-profit and financial aid programs from the banks which are available.

Understanding Centrelink Money
Various Centrelink money programs and loans are designed to help low-income earners and Centrelink recipients get the financing they need when they cannot qualify with major lenders. They offer assistance from specialised government lending agencies, grants, and benefits, as well as groups of Centrelink approved lenders among credit unions and non-profit organisations.

Features of Financial Assistance
The features of Centrelink money loans vary greatly, just like the loans themselves. However, there are some general similarities between them. They are:

• Small fees
• Low interest rates (some lenders even offer no interest loans)
• Flexible repayment period
• Quick approval proceedings
• Flexible eligibility criteria

Flexibility is the key feature of these financing options, so every low-income earner in Australia can find a solution that meets their particular needs best. Note that there are even some financial aid options available to migrants, visitors, and refugees. You should consult the Department of Human Services to get more information about the payments, benefits, and loans you can use depending on your status.

You can also contact the Financial Information Service (FIS) to receive any kind of assistance necessary for making wise financial decisions.

Popular Centrelink Money Options
Depending on the type and size of loan you seek, you may use one of the many Centrelink money options on offer.

Advanced Centrelink Payments – This solution is available to Centrelink recipients who experience an emergency or require a large financial sum for some other eligible reason. In fact, this isn’t a loan, but an advanced payment on your benefit program, so there are no interest rates involved. However, in order to qualify for this service, one must have received the payment for no less than 3 months. Eligible payment programs include disability, age pension, parenting payments, and some other programs targeted towards low-income earners.

Centrelink Approved Loans – These are offered by a variety of lenders who must comply with the requirements set by the Centrelink. Whether they are offered by non-profits, banks, or credit unions, these financing options act similarly to payday loans, but they have much lower interest rates and fees (or none at all). These loans provide financing for vital needs, like essential household items, health items, or car repairs (depending on the location). They don’t cover personal entertainment, like holidays, or non-essential purchases. The size of the loans varies from $100 to $3,000 and the repayment period is determined by the borrower’s situation.

AddsUP – Available to those who has repaid a StepUP or a No Interest Loans Scheme (NILS) loan. This plan helps you build up your savings starting from $300, offering a bank’s dollar for every dollar you save, up to $500.

Saver Plus – Similar to AddsUP, this is another savings plan that offers a dollar for each one you save (up to $500). This plan is designed for low-income families and this money can be used for educational purposes.

No Interest Loans Scheme – The NILS loans are available to low-income earners and families and can be used to cover essential household and personal expenses as well as the purchase of certain medical equipment (wheelchairs, asthma pumps, etc.). The repayment period ranges between 12 and 18 months, and the maximum loan amount is $1,200.

Centrepay – This option is good if you are receiving Centrelink payments and need the money to pay your bills. You can use this program to redirect some of the payments to cover parts of the bills to make them more manageable for your current level of income. The terms can be negotiated and changed depending on the shifts in your financial situation.

Financial Hardship Programs – There are a variety of situations when one may experience financial hardships and specialised programs designed to offer monetary aid in these specific cases. Be sure to check your eligibility for these programs before you consider taking out a loan. The available options include:

• Centrelink – A federal assistance program that offers payments to a variety of groups and individuals, such as:
  • Low-income families
  • Carers
  • Older or retired Australians
  • Job seekers
  • Individuals eligible for crisis and special help payments
• Australian Taxation Office – The ATO may offer hardship proceedings that will allow you to get your tax refund much faster. However, you will need to prove that you have no other financial avenue and are expecting a taxation refund.
• State payments – These payments vary depending on the state and offer financial aid in case of personal emergencies. You’ll need to contact your municipal government to learn about the options available to you.
• Non-profits and charities – These organisations may offer loans or emergency aid programs. They usually specialise in a particular social group (single parents, veterans, etc.)

Good Money – Available to Victoria residents, this community finance program offers a variety of low and no-interest loans for a variety of essential household and personal purposes.

Service’s Relief Trust Fund – This loans and grants program is available to members of the Australian Defense Force. The loans can be repaid through the borrower’s salary.

Fairloans – A program similar to StepUP, this non-profit partnership offers loans of up to $4,000 to those who can’t meet the banks’ eligibility requirements.

Concession Cards – This option is available for Centrelink recipients. You’ll need to do some personal research in order to determine what types of concessions you are eligible for.

Community Initiatives – Many Australian communities have non-profit initiatives that offer financial aid in emergency situations through micro and macro loans as well as provide sound financial counseling.

Peer-to-Peer Lending – These loans are available to those over 21 and with a good credit history as well as stable income.

Pros/Cons of Centrelink Money
The pros and cons of each option vary depending on the type of loan you use. In general, they can be described like this:

Pros:

• You get the money you need to overcome a difficult situation.
• Eligibility requirements are minimal.
• Interest rates and fees are low or completely non-existent.

Cons:

• Many programs have very specific eligibility requirements.
• Taking a loan if you have low income can make your financial situation worse.
• You can only borrow money for specific types of payments.

Eligibility of Centrelink Money
General eligibility requirements for Centrelink money loans are:

• 18 years or older
• Australian resident
• Receiving a minimal income (provide payslips and Centrelink payments letter)
• Proof of ability to repay the loan
• Credit history (may not be necessary depending on the lender)
• Purpose of the loan
• Savings information

How to Apply for Help
The application process for assistance depends on the lender, so you’ll need to research the specific requirements of the program you apply for and follow the instructions. In general it’s the same process as applying for any form of credit – providing and proving personal and financial details.

FAQ of Centrelink Money

Can I get a loan for buying a house?

Yes, these options are few, but you can get assistance from the Australian First Homeowner Grant and the Shared Home Ownership program – more home loan info here.

Can I get loans with bad credit?

Yes, the majority of Centrelink recipients and low-income earners are eligible for a variety of loans and financial aid programs regardless of their credit history. However, it will depend on the lender or program. In these instances, benefits and grants may be more suitable.