Traditional lending sources can be a no-go for the unemployed. Here are ways those on disability might be able to receive funding through alternative lending.
Suffering from a disability is that much harder when you are hurting for cash. What makes matters worse is many providers do not lend to those without an income exceeding what is provided by disability payments.
Employment Facts on the Disabled
Besides banks not being there for the disabled, employers also struggle to offer assistance. The data shows that about half of disabled people cannot get a job. It is even worse if they live in an area with slightly higher unemployment.
Businesses may view someone with a physical disability as a potential liability or expense. For instance, studies show that most businesses do not have full access for disabled people. Thus, they might not be willing to make modifications for the disabled employee.
Even when they do find work, those on disability will often not be able to work full time. Many have a limited income slightly supplemented by the disability check. Others can only work from home, which limits how much they can make.
Besides that, the disabled will sometimes need to miss work for days in order to get specialized services. Although they will still get their pay, they will miss chances for pay raises and promotions. Besides that, if they take too many sick days, the employer will have to cut their paycheck. They may also refuse to pay the sick leave.
In most areas, the disabled have to pay some of the cost of treatment out of pocket. It makes disability payday loans a real lifesaver when an emergency arises.
While insurers can be a lifesaver during a medical emergency, the cost of treatment can still be quite expensive. In some cases, the medical procedure can greatly exceed the patient’s savings. It is no wonder people on disability must borrow money to meet life’s financial challenges.
One of the reasons to get disability payday loans is for the repair or replacement of equipment. Many people on disability usually require special devices to carry out daily activities. However, this equipment might break. In some cases, insurance is not enough. Thus, the person may need to request assistance from family for friends.
This does not always work. That is why a disability payday loan might be necessary. It may help the person get the device they need fast so that they can go on with their lives. It is important only to use payday loans when necessary. Besides that, you need to have a solid plan for repayment.
The actual cost for equipment can be quite shocking, even for those with a job. For instance, even a basic wheelchair without any electric parts can cost upwards of $100. That is quite high for something that is crucial for daily life.
The equipment is just part of the cost. The disabled also need to make renovations to the house in which they live. The work done to the building is a major reason people take payday loans. Most insurers will not cover the extensive repair work.
If they do, it will take months to approve the paperwork and might cover only a fraction of the work. Everything from the bathroom to the staircase to the doorways may need to be modified. This ensures the home is accessible and safe, thus preventing further injury.
Things like countertops are also lowered. In some cases, major sections of the house need to be rebuilt. All of these modifications cost money. This will often require more than the disability payments can possibly cover. It is one reason the disabled turn to payday loans.
Additional Fees for Services
There is also the fact that people go out of their way to charge the disabled more for normal services. For instance, taxis have been known to charge more to transport those in a wheelchair. In most cases, it is because they can leave the meter running as they help someone into the car. In some cases, this adds about 20 extra minutes to the charge.
Travel insurance can be quite costly for the disabled. If traveling for business, this might require a payday loan. Besides that, the travel company will charge more, too, especially in cases where medical assistance is needed. It is obvious that the lives of those with a disability are more costly, necessitating financial assistance such as payday loans.
Payday Loans for People on Disability
Government reports unfairly state that the disabled receive even more than they need from federal and state funds. However, most of them receive the minimum amount possible. If a person is declared fit to work, their payments can be slashed, making their situation worse. In general, there have been huge cuts to welfare programs, which have left the disabled in a bad situation. It is especially so when you consider that the cost of living continues to rise.
Requirements for Bad Credit Disability Loans
If you are someone who gets disability checks every month, you may qualify for a payday loan. In most cases, one requirement for a payday loan is proof of a stable source of funds. Fortunately, disability checks usually arrive on time.
This form of funding works much like other forms of alternative lending where the bank statement helps to verify that you have an income. You may be pleased to learn that bad credit may not automatically disqualify you. Although lenders may be willing to work with poor credit borrowers, they will likely not offer no credit check loans. All lenders conduct credit checks but may consider income more heavily in the decision process.
While lenders will give payday loans to people on disability, it is not guaranteed that you will qualify. It is thus important that you take some time to do your research. You need to check the repayment model. This will help you know whether you can afford the loan repayment. Go through the terms and conditions thoroughly before you sign for a loan. You could also ask a friend to recommend a lender they have used in the past. Never be in a hurry to sign any documents just because you are pressed for funds.
The payday loan is not a loan to be taken lightly. They carry serious repercussions, like any other loan. The interest quickly builds up if you need to roll over your loan. However, they work effectively for those who use them in the right manner. Just be sure you absolutely need it. And, if you have an issue, look for the cheapest way to solve it. For instance, if you are reworking the house; try to negotiate as much as you can with a contractor until you get the lowest rate possible.
There may be an alternative option available to you. You can look into a local charity organization to try to get the help you need. This will help you avoid using any of your own cash. However, if all else fails, a payday loan can really save the day. Always borrow what you can repay.
How to Use Your Disability Loan
Once the loan has been approved and you have agreed to the terms, you can receive the funding in as little as one business day. From there, you will have full control of the funds.
The funds can be used for whatever you desire. Having said that, you really need to be careful about how you use the money. If there are any leftover funds, you should put it toward paying back the loan as soon as possible. Keep in mind that you will need to repay the loan at relatively high rates. It will help to ease your life as you repay the loan.
Avoid using the loan to repay an old loan. This bad strategy will only deepen your financial hole. It can also damage your credit score. When you do eventually need to take out a mortgage or buy a car in future, it might not look good on your bank application. This loan solves short-term issues. The long-term ones require other forms of financing, and in some cases, a complete budget overhaul.