You can run out of money pretty quickly if you’re unemployed. Many people realize that they don’t have enough money to last them for too many months. When you’re low on money, you wonder what options are out there for you. Finding a side hustle is always an option for bringing in money, but some people are lazy. Some people rely on loans. They wonder if they can get a loan if they are unemployed. The short answer to that question is yes. In this post, I will go over some things that you should consider if you are considering getting a loan if you’re unemployed.
As I stated earlier you may be able to qualify for a loan if you’re unemployed, the interest will be very high. Since you’re not working at all at the moment, the lender will look at you as a high-risk customer. That’s why your interest will be high.
Payday Loans
You may be able to qualify for a payday loan. A payday loan is a small loan lent to somebody with a very high-interest rate. The money is due back to the lender once you get your next payday. These loans can be tricky because you’re unemployed. You have no idea when your next payday is going to be. Imagine that you get a payday loan for $500. If the finance charge is $20 for every $100 owed that is an extra $100 that you have to pay. Let’s also say that they charge that fee weekly. If it takes four weeks to pay that loan off you would end up paying an extra $400. That is ridiculous. That’s one of the reasons that I’m not a fan of payday loans. They are highway robbery.
Car Title Loans
A car title loan is another way that you can get cash. A car title loan is a quick way for people who own their vehicle to get money. With this type of loan, you have to pay the lender a fee. The loans have to be repaid in 30 days. The interest on the title loan can high. If you are not able to pay the money you owe, the lender can take your vehicle. Years ago one of my friends took out a title loan. He never paid it, and honestly, I don’t believe he ever intended to. Long story short, he ended getting his car taken. If I were you, I wouldn’t take out a car title loan. Losing your car after you already lost your job would be a double whammy. Don’t set yourself up for that type of failure.
If you do decide to get a loan while you’re unemployed, remember that it needs to be repaid sooner than later. I know your situation is hard while you’re not working, but I’m not an advocate of getting into more debt. That’s a decision that you will have to make, though.
There is one last option that I want to go over with you today. That option is the pawn shop. Pawning some of your items might be the best choice for you if you are unemployed. Depending on where you live, you can find several pawn shops in your city.
At the pawn shop, they will estimate the value of the item that you bring. They will offer you money for it. If you want your item back, you have to pay the loan back plus interest. If you don’t pay the loan back, they will keep your item.
As you see, you can get a loan if you’re unemployed. You just have to figure out what option works best for you.
Join our newsletter
Subscribe to get the latest "Engineer Your Finances" content via email.