If you have had difficulties paying your debts in the past, you may find that your credit has suffered. Even though you may be considered a bad credit risk, there are some programs available to help if the need arises.
If you have had difficulties paying your debts in the past, you may find that your credit has suffered. Even though you may be considered a bad credit risk, there are some programs available to help if the need arises. Payday lenders or other types of fringe lenders are the first things that come to many people’s minds when they have a financial emergency and no access to funds to resolve the issue. Thankfully, there are alternatives to this type of loan. Let’s review some that may be able to help.
Below are a range of options for different loans that are specifically geared towards borrowers on Centrelink or pensioners on a fixed income.
This program is available to help those with low incomes or pensioners. These loans give you a low interest, fixed rate loan. Borrows can get assistance with household goods, medical help, and even computers. These unsecured loans range from $800 to $3000.
No Interest Loan Scheme
Better known as NILS, these loans are specifically tailored to those needing financial assistance that is affordable, fair, and reasonable. You must be receiving welfare benefits in order to get this assistance so it is especially helpful for pensioners. If you are thinking about getting an NILS, be sure to have your Centrelink pension card as that is a part of the application process. A pensioner can borrow up to $1200 with no interest or fees. You can use these loans for computers, furniture, household goods, health related items or even car repairs. NILS providers are located throughout Australia in various community centres. Just remember, you must show proof that you can pay back your loan within 18 months.
Centrelink Advance Payments
Anyone currently receiving Centrelink payments may be able to get an advance. For most pensioners they can receive one to three weeks of pay in advance. Within six months however, the money must be paid back. Like the previous loans mentioned there are no fees and interest to be paid. Over a six month period you can only take one advance payment of the maximum allowed or three payments using the minimum allowable.
If no other loans are available to you and you need immediate help, try checking into some of the charities. Many organisations offer assistance to pensioners in need of assistance with utilities, food, rent and clothing. You can try reaching out to charities like the Salvation Army, St. Vincent de Paul or go to Australian Charities and Not-for-profits commission site for a complete list of charities offering assistance. The great thing about these loans is that they are actually grants that don’t have to be repaid.
If you have tried all of the previously mentioned options with no success, you may then think of using a Payday lender. These companies generally charge high interest rates and fees. This may help if your needs are short term and you can pay the loan back quickly, if not this may not be an ideal loan type for you. Payday loans can be an expensive loan option especially if you have any issues with the repayments.
There are many types of pensioner loans available for people with bad credit or on Centrelink. From StepUp loans to charities, there are organisations and programs that are ready and willing to help. Payday loans should be the last place you think of because they will cost the most. Once you have met your financial need; get financial assistance. There are numerous community financial services available to you at no cost. You owe it to yourself to get your credit in order and your finances under control.