Apply for a DSS Crisis Loan Alternative when on a Low Income

DSS crisis loans help employed and unemployed people to deal with short-term money problems. If you've been refused, there are no credit check alternatives.

Despite having what you regard as an urgent need to borrow money, your application for a DSS crisis loan has been rejected. The rules are strict, so not everyone is going to qualify. However, don't despair as there are several private sector alternatives that could help you.

Cash loans for unemployed people or low income earners are available for any purpose from payday companies, pawnbrokers, credit unions and doorstep lenders. These are not interest-free, but they are a way of getting some quick cash when you've been declined elsewhere.

Alternatives to a Job Centre Crisis Loan

Pawnbrokers: If you have collateral, such as gold or silver, you can borrow money. After the item has been valued, you'll be able to borrow up to 50% of its value. The item will be held by the pawn shop until you've repaid the debt. If you fail to pay, the item will be sold.

Credit card cash advance: Most issuers allow you to withdraw a defined percentage of your credit limit from an ATM. The rate of interest will be slightly higher, and there will normally be an administrative charge. However, it's still likely to be less expensive than other options.

Doorstep lenders: Unlike most other sources of credit, you're able to borrow £500 and spread the repayments over up to 52 weeks. While this will increase the amount of interest that you pay, it does improve affordability. Repayments will be collected from your home by a local agent.

Credit unions: In order to apply, you'll need to become a member. People join based on a shared common interest, such as work, religion or locality. Interest rates tend to be more competitive and you'll also receive help and guidance if you experience financial difficulties.

Family: Borrowing money from a member of the family is your least expensive option. The danger is if you find that you're unable to repay the debt because it could place a strain on your relationship. If you run into problems, make sure that you talk about the problem with that person.

Payday stores: Even if you have a poor credit history, you may be able to get a payday cash loan for up to £1,000. Most lenders prefer you to have a job, but some lend customers a reduced amount when they're on state benefits. The agreement isn't backed by any collateral.

Applying for a Crisis Loan Alternative

While a DSS crisis loan is free from interest, borrowing money from the private sector certainly isn't. Pawnbrokers and payday lenders aren't lending money to people with awful credit because they're benevolent, it's about making a profit. The interest rate you'll pay is regarded as usury.

Loans for low income earners can help you out of a hole, but they aren't a long-term solution to your money worries. You'll normally be expected to repay the money you've borrowed about 30 days' later, and this will leave less money to pay the bills the next month.

Before proceeding, it's worthwhile noting that the UK government offers cash loans for poor people. You may be able to borrow upto £500 at a typical rate of 29.9% APR from My Home Finance. You'll be expected to provide bank statements and details of your personal expenditure.

If you're always finding that you're short of cash, borrowing more money is unlikely to be the right solution. Book an appointment with a debt advisory charity, like the Consumer Credit Counselling Service (CCCS), because you need to find a way tor realign your personal finances.

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