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Personal Loans

Getting A Loan on Centrelink

Getting a loan on Centrelink
Are you receiving Centrelink payments but need some extra help? Getting a loan on Centrelink is possible and here's how.

If you’re already receiving Centrelink payments, then you understand just how helpful the extra cash can be, no matter your situation. Of course, there are times you made need a little more to tide you over.

Whether you’re hoping to take off on a family holiday or find yourself in an accident with hospital bills to pay back – life can be unexpected at the best of times, and we can’t always budget for it. So, what exactly are your options when it comes to getting a loan on Centrelink?

Getting A Loan On Centrelink

When looking at getting a loan on Centrelink, it can often feel like your options are very limited. If you’re relying on Centrelink for payments, many lenders aren’t as willing to take a risk on you. Many lenders will offer you fast cash loans, which are ideal for covering car repairs, hospital bills and other unexpected bills that crop up from time to time. But what if you’re looking for something more?

Getting a loan on Centrelink doesn’t have to be difficult. It’s important to know that traditional lenders aren’t your only option. If you look beyond the banks, you’ll find there are plenty of non-traditional lenders, ready to take you on and help out with your financial needs. It’s about shopping around and looking at all the different options on the market. Don’t let your Centrelink payments hold you back.

loan centrelink

Getting A Loan On Centrelink – Types Of Loans Available

If you’re looking at getting a loan on Centrelink, the first thing you need to consider is what type of loan you’re looking for.

Here are some for you to consider and choose from:

  • Personal loans: this is one of the most common types of loans people choose to take out. While many traditional lenders might overlook you if you rely on a Centrelink income, there are plenty of non-traditional lenders to help you out. A personal loan is just that – for your personal use. It can help pay for that new fridge, or get you overseas to see family. They generally have lower interest rates than credit cards and can be used for any purpose.
  • Car loans: looking to purchase a new car? Don’t let your Centrelink payments hold you back. There’s no reason getting a loan on Centrelink should be any more difficult than getting a regular loan. You can use your Centrelink payments as security for your loan, which can also help to lower the interest rate.
  • Payday loans: there are times you need a simple cash injection to tide you over until your next payday. These loans are generally under $2000 and are ideal for the short-term. However, you want to make sure you have the means to pay off the loan before you take it out. Otherwise, you could find yourself spiralling into debt.
  • Centrelink cash advance: it’s also worth looking into whether your eligible for a cash advance on your current Centrelink payments. Generally, you only have the option to do this once a year, but that could be all you need to get you back on your feet.

It’s important to take a look at your individual circumstances and work out what loan is best suited to your needs. Once you know what you’re after, you can shop around for the right lender who is happy to take you on with your Centrelink payments.

centrelink loan

Taking Out A Loan

Before taking out a loan on Centrelink payments, it’s important you’re prepared and know what to expect. You should never take out a loan you can’t pay back. Here’s what you need to consider:

  • Don’t miss payments: this will result in fees and also impact your credit score. Plus, you end up paying more interest over time so the debt costs more.
  • Factor it into your budget: work out how the loan can fit into your existing budget. Will you be able to pay it back each week? Do you need to cut down on some other expenses?
  • Read the fine print: make sure you know exactly what you’re signing, and all the fees involved before going ahead. You don’t want any nasty surprises.

Keeping this in mind will put you in the best position possible to pay back your loan and stay out of debt in the long run.

Expert Help

Are you ready to take out a loan using your Centrelink payments? Then chat with the experts at Australian Lending Centre today. Whether you have a bad credit score or are relying on Centrelink as your income, they will happily find the right loan to suit your needs. Pick up the phone and give us a call today.

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Debt Management Tax Debt Loans & Relief

Debt Help – Unemployed Survival Guide

Debt Help - Unemployed Survival Guide
Debt Help - Unemployed Survival Guide

With the advent of a global pandemic sending Australia into lockdown mode, many businesses have suffered immensely. Social isolating is now the norm and businesses that were once thriving have been forced to close. This is a situation that no-one could have predicted and has left a lot of people searching for debt help.

Here is your unemployed survival guide.

I Lost My Job, Now What?

If you have found yourself without a job during this COVID-19 pandemic, you are certainly not alone.

With restrictions placed on restaurants, pubs, gyms, cafes and many other businesses taking a huge hit, they have been forced to lay off their employees. Australia’s unemployment rate rose to 5.2% in March. With Employment Minister Michaelia Cash stating that Treasury modelling shows it will spike in June at around 10%.

On top of this, figures from ANZ showed total job ads plunged 53.1 per cent in April, compared to a 10 per cent drop in March.

While the most logical solution is to go on the hunt for a new job, with fewer jobs available and more people looking for work than ever, this just isn’t an option for many. This has left many families looking for debt help. If you find yourself in this position, here are some steps you can take.

Look For Your Entitlements

The Australian Government has stepped up to help those who have lost their jobs during this time, so it is worthwhile looking at what you might be entitled to. Here are some you can look into:

The Jobseeker payment is available to those who were stood down or let go, including sole traders, self-employed, casual workers and contract workers. You have to meet the following requirements:

  • Between 22 years old and Age Pension age.
  • Income is under the test limits.
  • You meet residence rules.
  • You meet their Government’s definition of unemployed and are looking for work.
  • You’re sick or injured and are unable to do your usual work or study for a short time.

If you meet these requirements, you are entitled to anything from $565.70 to $790.10 a fortnight. Your partner’s income could also affect what you are entitled to.

Coronavirus Supplement payment: if you are eligible for the Jobseeker payment or other Human Services payments (such as Parenting Payment and others), then you will be eligible for this one too. It is a new support payment of $550 per fortnight, once again, dependant on how much you or your partner earn.

Economic Support payments: this is a one-off $750 payment for those who already receive a range of government benefits.

The idea of all these benefits is to give people debt help while we social distance and stay home to help slow the spread of COVID-19. Of course, for some people, these payments aren’t enough.

Get Debt Help

If these payments aren’t enough to help you with the cost of living and you are finding yourself in debt during this crisis, then it is time to get debt help.

Speak with lenders

The first thing to do is to speak with your lender and ask if they can offer any help. Many businesses are stepping up to support fellow Australians during this time and offering interest-free periods to stop your debt from increasing while you struggle to pay it off. You may even be able to pause or defer certain repayments. Many banks are offering relief from credit card repayments.

Look at your service providers

It is also worth calling around your service providers and seeing if they can offer any assistance. Look at cheaper options or whether accounts can be paused or suspended for the time being.

Sort your debts

If you are juggling a number of different debts, try and prioritise them and work out which one needs to be paid off first. It generally makes sense to pay off the one with the highest interest rate first and work that way. Debt Consolidation could be a good option for you. This is where all of your debts are combined into one, easy to manage payment with a lower, fixed interest rate.

Payday loans:

It may also be worth considering a payday loan to help make ends meet while all this is going on. They are short-term loans with no restrictions on what they can be used for. They do come with high fees attached to them, so it is worth weighing up whether they are right for you.

Get Debt Help Fast

If you are up to your knees in debt and don’t know how to move forward, it is time to speak to a professional and get some debt help. The experts at Australian Lending Centre will talk you through your options and give you the help you need to get back on your feet and see you through this global crisis.

Remember, these are unprecedented times that no-one could predict. If you need debt help, just know you aren’t alone.

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Debt Management Financial Planning Personal Loans

Dos and Don’ts of Getting a Loan on Centrelink

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You can still take out a loan when on Centrelink.||

It’s true that when it comes to taking out a loan, lenders will assess your earnings as a part of the application process. If you are relying on Centrelink payments, it can make it a harder process. But there are other factors involved as well. This means that depending on your situation, you’ll still be able to take out a loan if you need it.

Getting a Loan on Centrelink

Wondering what the process is and how you can go about getting a loan on Centrelink? You’re not the only one. We have set up a clear list of dos and don’ts for you to follow when it comes to getting a loan whilst receiving Centrelink payments.

Check Which Benefit You Are On

For some lenders, Centrelink benefits can count as income. This means your chances of taking out a loan can be higher. This typically doesn’t apply to all payment types. For example: Youth Allowance, Newstart and Austudy are unlikely to be accepted as part of your income. Why? Because they are temporary payments. If your circumstances change, you will no longer be eligible to claim them.

The first step is to work out what benefit you are on. Next, you should calculate how much this benefit contributes to your income. Providing this information to your lender upfront will make it quick and easy to determine what you are eligible for when it comes to taking out a loan.

Don’t Focus On One Lender

Just like taking out a regular loan, it is important to shop around. Of course, you want to do this without it affecting your credit score. The trick is to do it in the space of a couple of weeks. This way, it will only count as one hard inquiry instead of multiple.

Take a look at different interest rates on offer to ensure you are getting the best deal. You can even shop between traditional (banks) and non-traditional lenders to find what works for you. There is no one-size-fits-all when it comes to taking out a loan. Therefore, it is important to do your research and shop around to get the best deal.

Do Look For Lenders That Work With Centrelink

Shopping around is important. However, it is even better if you can find lenders that state ‘Centrelink Accepted’ on their website. Of course, if you can’t find this straight up, it doesn’t automatically mean they won’t accept Government benefits as a payment. The next step is to call them up and chat directly to ask them. Many lenders will be upfront about their policies. Meaning they will communicate whether they accept Centrelink payments as a form of income when taking out a loan.

Don’t Borrow Above Your Means

Being on Centrelink payments already, you don’t want to borrow above your means. This can mean finding yourself unable to pay off the debt. It can actually end up quite expensive borrowing small amounts of money – and it won’t solve your problems. All loans come with interest, so if you are unable to pay them back in a timely manner, you will be left with increasing interest over time.

Do Look At The Types Of Loans Available

Personal loans aren’t the only types of loans available to you while you are on Centrelink. You can also look at what other loans you might qualify for. This way, you can ensure you are on the best loan for your needs.

Centrelink Advance Payment

Depending on what type of benefit you are on, you may qualify for a Centrelink advance payment. Usually these need to be repaid within six months, or they will be subtracted from the amount Centrelink pays you.

Payday Loan

Finding a lender who accepts Centrelink as an income means you are eligible for a payday loan. These are small loans that tide you over until your next payday (or Centrelink pay).

Car loan

You can also take out a car loan. Your payments are used as a security for your loan, which can offer your lower interest rates.

Don’t Limit Yourself

Just because you are receiving Centrelink, doesn’t mean you are limited in your options when it comes to taking out a loan. All it means is that you need to shop around and find the right lender for you and your needs.

Loans On Centrelink

Getting a loan on Centrelink is very possible, especially if you follow this guide of dos and don’ts. If you are looking for a lender who can help you out, check out Australian Lending Centre. With our expert advice, you will be back on your feet again in no time. Finding a loan when you are on Centrelink can be simple, as long as you know the right process involved and get the right advice.