Hope May Be on the Horizon but Hard Times Are the Rule
Unemployment rates are presently hovering around 9%, but some states, such as Nevada, are experiencing rates of unemployment as high as 14%! Many individuals live under the daily threat of losing their jobs.
Though things are looking a little brighter economically, the situation of joblessness remains. If you have recently lost your job and do not have enough cash to see you through the time between jobs, you may be faced with taking a personal loan for the unemployed.
The Need for Cash Can Be Severe
They say that trouble comes in threes. If you have lost your job and you are already facing cash flow problems, it seems that then is when an emergency pops up. An urgent medical need arises or the car breaks down. At that point you may want to consider taking a personal loan for the unemployed.
Personal loans come in two flavors - secured and unsecured. Secured loans have collateral, or valuable property owned by the borrower, to back them up. If the borrower defaults, the lender can take the property and sell it to cover the cost of the loan. An unsecured personal loan for the unemployed requires no collateral.
Understanding the Trade-Offs
Because of these shaky financial times, many borrowers are unwilling to place valuable personal assets - a home or a car, for instance - on the line, even though they may be desperate for cash. Since these unsecured personal loans for the unemployed have no collateral, the lender has to offset the risk by asking for higher interest rates and higher fees.
Also, the amount of the loans offered may be limited and the repayment terms may include rather quick pay-off periods. But for many, the higher costs may be a good trade-off against losing valuable personal assets. No one can foretell the future of national economies. And having the cash is often worth the higher cost as well, especially if an emergency arises.
Lending Help for the Unemployed
You may surprised to know that unsecured personal loans for the unemployed are even available. You may be even more surprised to learn that there are lenders who specialize in granting unsecured personal loans for the unemployed. You may have seen some advertised locally. You can find many more by availing yourself of online resources. The fact is that many traditional lenders, such as banks and credit unions, rarely grant unsecured personal loans for the unemployed.
As a result, many private lenders have stepped in to provide the service and most have set up shop online. A nice thing to remember is that these lenders have dealt with problems regarding unemployment, poor credit ratings and similar issues that may seem embarrassing. There is no need for embarrassment with these lenders. They have seen it all and your candor will be appreciated.
Shop Carefully and Diligently
By going online and pointing your browser to Unsecured Personal Loans, you will find pages of lenders who are probably willing to lend to you even though you are unemployed. Since there are so many lenders with rates that vary so widely, you will have a great opportunity to shop diligently to find the lowest interest rates, lowest fees and most comfortable repayment terms. Just be sure your lender is reputable and any page you use to divulge financial information is secure. Check your lender by using the online Better Business Bureau listings.
Be sure taking a loan today will not put you in trouble tomorrow. Check your budget. Understand that these loans are to fill an immediate need and are not for the long haul. At any rate, some financial comfort can be found through taking an unsecured loan for the unemployed.