Being in between jobs could be one of the roughest times for any Australian resident. And while the government provides assistance and temporary relief through the unemployment benefits available from Centrelink it’s hardly enough to keep you going for the long term – prolonged unemployment will definitely cause financial strain to unemployed Australians.
But being in a situation where you are on fixed benefits, or waiting for Centrelink to start paying, or starting a new job and waiting on that first wage payment, with unpaid bills piling up and won’t wait until you’ve got the money in your hand, what other options have you got?
You’d be relieved to know that there are financial institutions offering help to those who are currently unemployed and facing financial difficulties. The only important thing is to understand which institution and what type of assistance can help before jumping into a decision on how to handle your finances.
The first step you should take is to make sure you are receiving all the benefits you are entitled to during the time that you are not employed. This is important especially if you project that you would be applying for a loan while you are out of job. It’s just as important to make sure you are not claiming more than you’re entitled to – the government can and will make you pay it back.
Loans for unemployed are offered to Australian residents eligible for Centrelink benefits from the government. While banks may not risk giving loans to people without employment, other financial institutions consider your unemployment financial benefits from the government as your salary and therefore use that as income for granting approval to your loan application.
This type of loan is formulated and designed to help individuals get by with their financial needs until their unemployment benefits are received. Those benefit payments will then be used to pay for the unemployment loan repayments in easy terms.
And it is for this reason that you should make sure that your unemployment benefits are properly applied for should you lose your job. Not only will it help you with taking care of the basic needs, but you may also use it to back up your loan application if the need arises.