Tuesday, 15 July 2014

Loans for Unemployed People on Benefits - Cash Converters (IDEA 9 of 20)

This Post is Part 9 of the 20 Part Mini Series on Loans for unemployed people on benefit. One of the questions which is most asked on the Millionaires Giving Money Blog is - Do loans for people on unemployment benefits exist and how do I get one? After replying to a handful of these emails I was inspired to think of share 20 loan ideas for people on unemployment benefits. These 20 short sweet ideas are suitable for unemployed people, people on welfare benefits and disabled people in benefits as well as those who have bad credit history and bad credit store. Before you take out any loan always check the amount you borrow and the amount you have to repay. Always look for the cheapest APR loan so you pay less in interest. Always fill out an income and expense statement to determine how much surplus income you have to make the monthly repayments. So without further ado here is the Ninth Loan IDEA for people on unemployment benefits.

Loans for People on Unemployment Benefits - Cash Converters 


Cash Converters offer cash for your household products. If you need cash right now you can take any products such as Plasma TV, Bicycle, Games Console, Mobile Phones, Cell Phones and other gadgets and have them appraised so you can get a cash payment for the goods. The products are appraised and 50% to 75% of the value is given as cash. 100% is not given because the Cash Converters are taking on the risk of failure to sell. Cash converters offer services such as Pawnbroking, Cash for Gold, Cash Advances and Personal Loans on products. Cash Converter stores was launched in 1984 and has stores in over 21 countries.

To get started gather all your products which you no longer use which may still have value in them. These products could include unused TV's, DVD Players, Box Sets, Cell Phones, Tablets and any other gadgets. Try to appraise these products yourself by looking at the prices on eBay. Once you have an idea of the valuation you can take these over to Cash Converter Stores and then use their Pawnbroking service or Cash Advance service to get a loan. Always negotiate the APR amount so you pay less in interest payment. 

Once the loan is agreed in principal check the small print and find out how many payments can be missed before the goods are sold. Once the loan is approved make sure you set up an automatic transfer into your from your bank account to service the loan. Cash Converter loans for people on unemployment benefits is a convenient service if you need cash quickly and want a low APR secured with collateral.     

Loans for Unemployed People on Benefits - Pawn Shops (IDEA 8 of 20)

This Post is Part 8 of the 20 Part Mini Series on Loans for unemployed people on benefits. One frequent question I get asked on the Millionaires Giving Money Blog is - Do loans for people on benefits really exist? After replying to a handful of these emails I decided to think of and share 20 short sweet loan ideas for unemployed people on benefits. Before I share these ideas its important that you carefully consider each loan proposal. Always look at the amount borrowed and the amount you have to pay back. You should also try and reduce the APR interest as much as possible because you'll be paying less in interest payments which inevitably make people poorer. Always fill out a financial statement which contains income and expenses and then look at the surplus you have left over every month. If your surplus disposable income is more than your loan repayments you can afford the loan without getting into financial hardship. Now without further ADO here is IDEA 8 of 20 on loans for unemployed people on benefits.

Loans for Unemployed People on Benefits - Pawn Your Valuables


Another option unemployed people have for a loan is pawning their valuable items at the Pawn Shop. Pawn Shops work by appraising valuables and then offering a loan based on approximately 50% to 25% of the value of the items. The interest rate is usually lower than pay day loans because the items are used as collateral for the loan. The loan is amortized over a period of time and a monthly repayment schedule is produced for the borrower. Borrowers are usually required to set up an automatic transfer from their bank account so the payments are made on time. When payments are not met the valuables are kept and sold for a profit. Pawn shops seldom make losses because they have the power to recoup the loan and make a profit after selling the items.

To get started gather all your valuables and have them independently appraised. If you have jewelry you can have the items appraised at any gold and silver store. Once you have an idea of the valuation you can go to the Pawn shop and negotiate the loan amount and the APR. Always go in with a loan amount in mind and never borrow more because your valuables are worth more (use less valuables). Also always try to negotiate a lower APR because this way you will be paying back less in interest payments. Once you have your loan agreement pay attention to the small print. In particular check how many payments can be missed before the items are sold by the Pawn Shop. 

If you go ahead with the loan make sure you can afford the payments by filling out a financial statement. If you can afford the loan go ahead however if you can't afford the loan then avoid it otherwise you risk all your valuable items being sold by the Pawn Shop. Pawn loans for unemployed people on benefits is a great way to raise money however you must be aware of the risks involved.