Loans for People on Benefits: IDEA 5: Join a Credit Union
Credit Unions are financial organisations which are run by members for the benefit of members. Most Credit Unions are not run for profit and are completely devoted to offering financial solutions to its members who are in hardship. To get started you need to find a Credit Union and become a member. You need to show your income and expenses financial statement to show that you are living within your means and are saving every month. Once you've proven that you can manage your money effectively you can apply for a credit union loans.
Credit Union Loans are much cheaper than Pay Day loans because the Credit Unions are not in business to take a profit. Credit unions just match lenders and borrowers and charge a small administration fee. Using credit Unions you can apply for loans at reasonable rates and then pay them off slowly over a period of time that suits you. If you do get into trouble the Credit Unions help to resolve the problems so you get enough time to get back on your feet.
Before you take out a credit union loans for people on benefits always look to increase your income and reduce your outgoings so it will improve your financial statement. The better your financial circumstances the better your chances of being approved of a loan. Credit Unions are run for members by members so you will be in good company as these members will understand if you do begin to experience financial hardship. As always determine whether you really need the money and try to negotiate a low APR so you pay back less in interest. Always fill out your financial income and expenses form accurately to find out whether you can really afford the loan.