Unemployment can cause you a massive financial crisis. If other members are dependable on a single person and he was the only earning member of that family, then the situation becomes worse. While you are pondering how to get financial help being unemployed, we are here to show the solution path.
By borrowing loan from lenders –
Loans for the unemployed are one of the easily accessible sources of funds. It will be not so tricky to eligible for an unemployment loan—just one thing you need to show a good credit score and a possible source of income. Maybe you think that, although you can manage for good credit score, how can you show a possible source of income?
Don’t worry because it is termed as an unemployed loan, so it will be tomfool to ask for a source of income. Nevertheless, it is for the lender’s assurance. He wants to be assured enough that the borrower will repay the whole amount. However, often lenders concentrate on these parameters before providing money –
Good repayment history: A repayment history contains a brief analysis of your credit history, such as whether you have completed the previous owes on time or not. Suppose you missed any of the repayment or not. Indeed, a good repayment history will keep you a step ahead to become eligible for an unemployed loan.
Stable source of income: While providing an unemployed loan, a lender always worries about if he can get back the whole amount with interest. This is quite natural. For this reason, lenders may ask the borrowers if he has any other source of income or not. Because only then a borrower may repay the loan amount every month. Here is a list of income that can be shown as a stable source of fund.
Good credit report: If you worry that lenders may ask you for a high credit score, it will be as imaginary as a daydream. Yes, the lender may ask you for a credit score, but that does not mean that they only find those eligible who will be able to secure a high credit score. They set a minimal entry-level score for everyone, so that needy borrowers become eligible for loans for an unemployed and bad credit report will not become a hindrance in their way.
- Conventional allowance by the government
- Funds after retirement or senior citizen allowance
- Fund provided to a person with a disability.
- Financial support provided to the orphans.
- Yearly allowance from the government
- Income from investment
- Income from tutoring
- Monthly income from the trust
So, all these can be shown as your other source of income which will provide enough assurance to the lender about your timely repayment.
Take help from the government –
Apart from trying for the unemployed loan, it would help if you also appealed to the government for financial help. As the United Kingdom Government has several new allowances for its people, you can also enjoy the benefits. Therefore, it will be a great idea to ask for financial help from both the local councillor and the central government.
For getting the food:
If there is no food left in your house, then easily nearby food bank can lay their helping hands towards you. From the food bank easily you can collect a meal for you and your family. Apart from providing food, the volunteers will also advise you on how to find financial help.
The government initiated schemes:
Sitting alone with the crisis will not help you anymore. It would help if you looked for a way to get rid of the problem. We can understand how it feels to identify yourself as an unemployed. However, if you want to be helped by the government, then keeping aside hesitation, you should apply for those specially implemented schemes for the unemployed to mitigate their financial crisis.
Financial support for women and children:
Women and children are believed to be a delicate part of our society. So, to protect them, the government has initiated several new programs. If a pregnant lady doesn’t have any source of income, she will be taken care of by the state. From the time of pregnancy till her child approaches teenage (i.e. at least 16 years), the government will take care of both the child and the mother.
With special tax credit benefit:
The UK government has taken so many initiatives for the welfare of people to mitigate the financial crisis and mitigate the financial crisis. One of them is child credit tax. It is a rebate provided to the parents of children to help grow the future of their children. By applying for this rebate, a family can get help up to €16,190.
Get help being a senior citizen:
Unemployed senior citizen also can take help from the state. The United Kingdom incorporated many new schemes for unemployed older people who cannot earn money or run out with the pension fund. So, they can easily apply for several pension schemes to help them run their family and fulfil their basic needs.
Go for a DHP–
Being unemployed if you are staying in a rented house, the pain of financial crisis becomes double. In that case, you may feel puzzled whether to pay the rent or to run the family. Moreover, to run the family or repay the loan, you may have already applied for Housing benefits or universal credit. So, again become eligible for another financial help from the government is next to impossible.
To get yourself out from such an unpleasant financial situation, you may take help by applying for a DHP, i.e. Discretionary Housing Payment. After applying for DHP, your local councillor will finance you for paying the house rent. Remember, although the whole process may sound easy, getting financial help requires valid proof of financial crisis. Moreover, it depends upon the intensity of circumstances you are facing.
However, even the councillor decides to provide you with financial help. He will notify you about two important factors. Such as –
- The amount you will get to pay the rent
- The period up to which the council will pay on behalf of you.
However, don’t worry, as you can apply for DHP once more if the given tenure exhausted. Therefore, you need to be cautious while applying for this help because it has been observed the application gets cancelled. Here is an entire guideline of steps to follow for applying to DHP.
Steps to follow while applying:
- Be transparent with your financial situation. Unless and until you will be able to make the other people understand the intensity of your need, how one can lay their helping hand towards you? So, mention the financial crisis you are facing.
- Don’t forget to mention the reason for your inability. The reason should be adequate to get the help quickly. Suppose, if you are unemployed due to a pandemic situation and your wife is pregnant, then mention it in your letter. The councilor will get back to you fast.
- Attach evidence of your crisis. Like if you are unemployed, and then you may get a relieving letter. Attach it with your application.