During 2005 and 2006, personal social services represented 19.3 billion pounds in spending by English local authorities.
Children and families received 25 percent of this money and older people had a 43 percent share.
In those same years, 46 percent of single female and 39 percent of single male pensioners within the UK were receiving income-related benefits.
This funding is sometimes not enough, forcing some of these individuals to turn to short term loans for people on benefits.
These are not the best economic times, to put it mildly, and many UK residents have paid a big price.
As of 2008, benefits became a way of life for six million Brits in unemployed households. Taxpayers contributed close to 13 billion pounds each year to these state handouts.
Though welfare reforms are going strong, nearly one in six households in England was on benefits as of 2008. Jobless figures are not improving, making it apparent that people on benefits may need short term loans to supplement their government aid.
Finding Short Term Loans For People On Benefits
Receiving benefits does not exempt a person from consideration for a short term loan. In fact, some companies specialize in short term loans for people on benefits. People who are permanently disabled are likely to be on benefits forever. Inflation has caused groceries, fuel, and personal items to become more expensive and benefits payments are having trouble keeping pace.
Permanently disabled individuals have no way to earn income so they must rely on things like loans to supplement their benefit payments.
Some individuals on benefits have poor credit that prevents them from qualifying for traditional loans. If they find themselves in a short term financial bind, they can apply for loans for people with bad credit. These sometimes feature direct deposit of funds into the bank account within the same day.
Collateral is often not required and since a credit check is not conducted, applicants are more likely to be approved.
Higher APR But Still Worth Driving For A Deal
Short term loans for people on benefits often feature higher interest rates than bank loans. However, since many lenders are competing for business, it is possible to find a reasonable rate. Simply compare the interest rate and terms offered by each lender and select the most attractive loan. Repay the money as quickly as possible in order to pay the least amount of interest. Whenever possible, avoid rolling a balance into another loan.
Reputable organizations offering loans for people with bad credit never charge a fee for completing an application. If the lender asks for money up front, continue the search. There is no reason to spend money when loan approval is not guaranteed and even then, it is never guaranteed that the lender is reputable.
When repayment date is a concern, search for a flexible repayment feature offered with short term loans for people on benefits. Not all lenders require fixed repayment dates and having the flexibility to change dates can mean the difference between repayment and rolling over the loan. Borrowers should be smart and know their limitations.
Until the economy recovers, it seems like more people will find themselves receiving benefits. When these payments are not enough, they can be supplemented by short term loans for people on benefits. Finding a reasonably priced loan online is not difficult and when a credit check is not involved, even those with bad credit should qualify.