There are essentially two types of Centrelink loans available and multiple options within these two…
Hardship Finance for bad credit, unemployed & Centrelink
With the rising costs of living, thousands of Australians are finding it more difficult to keep up with everyday household expenses, not to mention other financial commitments. Living pay cheque to pay cheque is stressful and can lead to unmanageable debt.
Fortunately, there are different levers available to help reduce the pressures of different bills and debts. These can include any of the following or a combination of a few: cash injections, consolidation, restructuring of repayments, payment deferrals.
Hardship loans or help for bad credit
Those with bad credit and dealing with financial hardship will find it difficult to qualify for an unsecure loan that has favourable terms to actually help. In many cases qualifying will be difficult and can lead to further stress when getting knocked back.
If accessing cash is the right solution to help with your financial needs then possible, responsible lending options may include:
Advanced Payments from Centrelink for those already receiving benefits. This is a way to access money quickly which has no interest or fees attached to it. Check eligibility and apply here.
Specialist lenders which are niche based lenders that provide short-term cash loans from a few hundred up to $5,000 depending on eligibility. Note that these are for profit business and may have higher than usual rates along with fees. The higher costs associated with these loans are due to the risk factors in regards to defaults. Review terms and costs of specialist lending to see if its applicable to your situation.
Non-profit lenders are another great option for getting cash at a reasonable cost. They are responsible lenders looking to help Australians doing it tough. Whilst there are costs associated with these loans, they tend to be much lower than other options. Apply for non-profit finance here.
Financial hardship financial help for unemployed
Qualifying for finance whilst unemployed can be very difficult as lenders require the borrower to show the ability to repay the loan. In order to qualify, you must be able to show some form of stable income and it can not solely be Centrelink payments.
Here are different options for getting hardship loans when unemployed along with other financial support services.
Getting a hardship loan for Centrelink
Getting a Centrelink loan can be a bit more difficult than a traditional loan. Lenders may require more information to ensure the borrower is able to comfortably repay the amount borrowed. If you are experiencing hardship, this can be very difficult to do.
However, those looking for a hardship loan whilst on Centrelink do have several options to access cash or financial assistance to cover household living needs. See 10 different lending of financial assistance options available to those collecting Centrelink and in need of a hardship loan or financial help.
Tackling Financial Hardship Without An Loan
When experiencing financial hardship, many believe that money is the quick and only solution. Whilst it can help and perhaps provide short-term relieve, it may not always be a long-term solution.
In many cases its not that simple as people may be going through very serious life changes. Relationship breakdown, divorce, job loss, health issues, large unexpected expenses that completely wreck financial situations.
When these types of situation occur, a complete restructuring of the family budget and assistance from a financial counsellor may be needed. These are free services and they have been trained and equipped with the right resources to help in the immediate and long term future.
They can assist in a range of services to help with all forms of financial hardship. This can include different benefits and financial aid services to reduce bills and provide real breathing room with the monthly budget. Learn more about how you can get immediate financial help to aid with all forms of financial hardship here.
Speak to your creditors in regards to financial hardship. In many cases they will work with you to ease your financial commitments. Banks have hardship departments who’s function is to work with borrowers who are experiencing financial issues and unable to make repayments. Below are some of the ways they work with borrowers:
– They may reduce the payment amount or defer payments for a set period of time.
– They may put an extension on the loan term for you
– They may restructure the overall debt with you
– They can waive certain fees and charges along with making interest rate concessions.
How To Avoid Hardship Loan Scams
Unfortunately there has been a rise in online scams with regards to the financial services sectors. There are numerous scammers that target those dealing with financial troubles. Below are a list of ways to spot a scam. Always be careful and do your due diligence when applying for any type of finance.
– Always check for the companies ABN and credit licence information. Utilise the ABN lookup tool and confirm their credit licence.
– Watch for red flags: they don’t require a credit check, they ask for your banking details up front, high pressure sales tactics, or anything that sounds to good to be true.
– Google reviews on their business and website
– Google complaints on their business and website
– Contact a broker for a second opinion or speak to a financial counsellor for a second opinion.