Being unemployed is not fun. The bills don’t stop coming just because you don’t have a job. If you lost your job unexpectedly, it could be detrimental to your finances. Depending on your lifestyle, you might be out of money and very fast. To avoid going completely broke you might need to consider getting a loan. Payday loans are not the way to go. The interest for those loans could be over 100%. That is highway robbery. Today, I have four options for you when it comes to getting an unemployment loan.
Cosigner
The first option for getting an unemployment loan is to find a cosigner. If you know someone who has good credit, you should ask them if they are willing to be a cosigner for you. If they are, lenders will be more ready to approve you for the line of credit. If you do this, you have to make sure that you get a new job sooner or later. You want to make sure that you pay that loan in ample time. If not your cosigner will be liable for an amount that is not paid. That is not fair to them. You don’t want to get them in any debt. Also, you don’t want to ruin a relationship over something like that.
Ask a Friend
The next thing that you can do concerning unemployment loans is to ask a friend for the money. Every friendship is different. I have friends that I know I could ask to borrow from if I ever needed to. I also have some that I wouldn’t ask. Just being honest, people change when money is involved. If you have friends that you know won’t mind loaning you money, then, by all means, go for it and ask them. If not, proceed to number three.
Credit Card
While getting a new credit card is not technically considered a loan, it is credit that you can use until you get back on your feet. The interest rates may fluctuate on the card, but they come in handy during an emergency. In situations when you need cash only, you can quickly go to the bank and get a cash advance.
Make sure that you pay attention to the payment date and other information located in the fine print. You don’t want to get into a worse financial situation because of a cash advance.
Family
Family is the last unemployment loan idea. I put it last because at times money and family just don’t work. It may even be better just to give the person who needs the money a gift instead of a loan. I’ve heard plenty of stories where family members loan someone money, but they never get it back. That’s a crazy situation to be in. If you must borrow money from your family, let them know exactly when you’re going to pay it back.
As you can see, there are some options for unemployment loans. If you need one, please choose wisely.
Jason Butler is an Atlanta native, as well as businessman, blogger and teacher. Not only is Jason a prolific flipper, marketer, writer and side hustler his number of years in higher education and student support have given him expert knowledge in understanding the economics of the student loan industry.