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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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News Business Loans Financial Planning Short Term Business Loans Short Term Loans

Emergency Business Loans – Risk vs Reward

Emergency Business Loans||Emergency business loan support||Can an emergency business loan help?||business loan calculator
Emergency Business Loans||Emergency business loan support||Can an emergency business loan help?||business loan calculator

As we find ourselves in the middle of a global health crisis brought on by COVID-19, there comes a point where protecting physical health comes at the expense of our financial health. Employees at risk of carrying the virus are being forced to stay home. Spending habits have completely changed. The stock market has crashed. The list goes on… But what does this mean for your business? Cashflow is likely to be stretched within any company at this time, particularly within business start-ups. If you don’t have much money in the reserves then how can you keep your business afloat if the worst does happen? Emergency Business Loans can provide a fast source of income for when things don’t go to plan. This sounds great, but what are the risks?

What Are Emergency Business Loans?

Emergency business loans can provide a fast source of income to give your business the cash injection it needs during tough times. They are usually granted quickly and you don’t always need a great credit score in order to be approved. But they do often come at a cost, including higher interest rates than a standard loan. Emergency loans come in many forms. These include unsecured personal loans, credit card cash advance loans, payday loans and even pawnshop loans.

Emergency personal loans

The great thing about emergency business loans is that they can be processed extremely fast. You can expect to receive an emergency business loan within days of approval. Depending upon your credit score, you might qualify for an unsecured personal loan. This means that the loan will not be secured against any assets, such as property or a motor vehicle. Personal loans usually have fixed interest rates and can be paid back over a set period of time. Before taking out an emergency personal loan, you should first ensure that you will have the funds available to pay it back, otherwise, you will wind up in a worst financial position than you started in, along with your credit history taking a battering.

Emergency cash advance loans

It is possible to use the remaining balance on a credit card to take out as a short-term loan. This will mean a higher interest rate than normal and this rate will also be relative to how much you take out. So be wary of how much you do borrow via a cash advance loan.

Emergency payday loans

Unless you’re expecting an influx in cash in the very near future but are in a desperate and immediate need for cash to tie you over, for the time being, a payday loan is a risky option. APR’s can be as high as 400% and need repaying in full, rather than in instalments. This should be a last resort option. It’s easy to become trapped in an endless cycle of re-borrowing in order to pay the last payday loan off.

Emergency pawn loan

Another last-ditch option here. You can have personal items valued by a pawnbroker, of which they will use as security in order to back the loan. And if you find yourself unable to repay the loan, your pawned item will be listed for sale.

Are There Alternatives to Emergency Business Loans?

Your personal credit score will not be affected by your business loans. Nonetheless, you still need to submit your personal credit rating. You also need to prove your revenue for a year or two. Banks have tightened their lending criteria in recent times and often require financial history or in-depth account records to assess the capacity of the business to handle their financial obligations. This means that applying for emergency business loans through a bank can be a tedious, time-consuming process. For this reason, if you need funds fast, then banks aren’t a great option.

Emergency business loans may come at a higher cost for borrowers with no proof of income and a poor credit rating. When this happens, it is advisable to search for other options. Here are two alternatives which could help you establish or maintain your business especially when there is an urgent need for funds:

Line of Credit

Do you have a business account with a bank, but don’t qualify for its traditional business loan? You can apply for a line of credit instead. A line of credit enables you to access extra money whenever you need it. This is because they don’t have a fixed term, unlike personal loans. So, you can use it without applying for another loan. You also only pay interest on the amount you have borrowed, not your entire credit limit. However, usually, interest rates are usually variable with lines of credit, meaning that they can fluctuate up or down. You also can’t expect a quick turnaround with a line of credit because it may take weeks before it gets approved. Yet, it can still be a very useful resource for future business emergencies.

Specialised Lenders

Specialised lenders like Australian Lending Centre cater to businesses that do not qualify for traditional emergency business loans. ALC understands that business must continue as usual despite any financial drawbacks.

Considerations Before Taking Out an Emergency Business Loan

If you want your business to keep operating, you need the right funding to pull you out of problematic financial situations. There are also some management decisions that require immediate cash to sustain growth and avoid serious fallbacks.

What are the things to keep in mind when applying for emergency business loans?

Determine the business’s needs and the amount you need to meet it

It is important to have a clear idea of what you really need before you sign the loan application form. It is very easy to lose track of what you intended to do from the start if you don’t have a clear understanding of your needs. Remember that the amount must not be greatly higher than your actual needs. When running a business, it’s important to remember that the costs must be lower than the profit. Otherwise, you will end up spending more than what you actually earned and your business will suffer.

Review your credit history

Have you missed or been late on some of your previous debt repayments? If so, why did it happen? Before you apply for an additional loan, make sure that you have a good budget in place to avoid repeating the same mistake.

Specialised lenders may offer bad credit business loans, meaning they can still approve your loan application despite negative credit history. But reviewing your credit file is good to practise. You may find that there are defaults or judgements which have been incorrectly listed. So, before you send your business loan application, make sure that your credit file is accurate and up to date. Companies such as Clean Credit are able to quickly and easily assess your credit file and repair it if required.

Study your financing options

Specialised lenders may offer better terms than traditional banks, especially if you don’t have a stellar credit rating. Review the company and its loan products, and compare them with other financing institutes. Check if the financing procedures are safe and secure and if you will be able to save more money in the process. It is also important to talk with the loan officer and ask about the details of the loan, including its comprehensive terms and conditions.

Always consider your business plan when applying for a loan – make sure that the amount you borrow and the financing agreement will support your plans. Use every cent you get to support your goals and to build a solid credit history so that you can quickly access business loans with better rates in the near future.

Emergency business loans from specialised lenders are usually approved between 24 hours and 7 days – so it is advised to create a budget before you send in your loan application. Not only will it ensure that you will use the money exactly as you planned, but it will also keep you from defaulting on your loan repayments.

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Short Term Loans

The Ultimate Guide To Short Term, No Credit Check Loans

short term loans for business cash flow

Taking out a loan can be a very long process. It is dependent on a number of factors, including what type of loan you need, your credit history, and the institution you choose to take the loan with. But sometimes, we need a quick cash injection to give our personal or business life that little boost it needs, and we don’t want to be waiting around for the long, drawn-out process of taking out a loan and miss out on opportunities in the process. This is where a short term no credit check loans can be very helpful.

What Is A Short Term Loan?

As the name suggests, these are loans that are taken out in the short term. Normally, they are expected to be paid back within the year. These type of loans are commonly taken out by business start-ups, who don’t yet qualify for a credit line from the bank, yet need a quick cash injection to get them up and running.

Types Of Short Term Loans

There are different types of short term loans that can be used for a number of different purposes depending on your individual circumstances.

Merchant Cash Advances

This type of loan is actually a cash advance, but it works in the same way as a short term loan. You can borrow a certain amount from the lender and then make the payments back to them by allowing them access to your credit facility. A certain percentage of each business transaction you make is taken back until you pay back your loan.

Line Of Credit

This is similar to using a business credit card. A limit is set, and you can use that credit as needed. You then have to make monthly instalment payments against the amount you have borrowed, so these will vary from month to month.

Payday Loans

These loans are usually given for emergency situations and can be fairly easy to obtain. Unlike the other loans we have looked at, they generally have to be paid back in one lump sum on your next payday.

Online Loans

Once again, as the name suggests these loans are carried out online. You can access a short term loan with a number of finance providers, with everything from application to approval done online with money wired into your account instantly.

Why Take Out A Short Term Loan?

There are a number of different reasons you may want to take out a short term loan.

Consider the following scenarios:

  • short term loan to cover car breakdown
  • short term loans to cover medical expenses

You have just started up a new business and need an initial cash injection to hire some employees to get things up and running. You have approached a bank, but they aren’t interested in helping you as you have no credit history and are considered a risk. If you’re looking to get back on your feet, the consider a short term loan. Short term loans can provide the foundation for taking out a long term loan down the track.

You need some money to fix your car after you have been in an accident. You need that money fast, as you rely on your car every day for work. Instead of waiting for approval from the bank, you can go down the route of a short term loan, get the cash as soon as you need it and get back on the road faster.

There are also plenty of benefits that come with short term loans

Less Interest

With a short term loan, you can expect to pay less interest. Pay them off quickly as the time frame is usually shorter. This doesn’t allow time for interest to build.

Instant Money

Given the fact that there is a lot less risk for lenders when it comes to short term loans, the process is a lot shorter and you can have the money with you even faster.

Easier To Get

Credit scores don’t factor in when it comes to obtaining a short term loan, which makes these loans even easier to get. The requirements are lower, which make them a lifesaver for many businesses.

Benefits Of Short-Term No Credit Check Loans?

Firstly, credit checks take time, which is one of the reasons the loan process can be fairly drawn out. Also, if you have a bad credit history, there is also the likelihood you won’t be approved for a loan with many financial institutions. Getting short term loans with no credit check sidesteps this and allows you to get the money you need when you need it, and without the hassle.

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Short Term Loans

Cash Advance With Payday Loans

Payday Loans Australia payday loans australia
Payday Loans Australia payday loans australia

Cash advance payday loans may look like a great option, but there is a downside. Your bills may be piling up, you may need to pay your car rego, fix a car, or pay for a medical bill, but you haven’t been paid yet? A payday loan seems like a simple solution.

If you are in dire need of quick cash, there are options available. One such option is cash advance with payday loans.

What are Cash advance payday loans?

Cash advance payday loans are high-cost short term loans that offer quick and convenient access to cash. If you are in need of cash to pay for upcoming bills; then a cash advance can help you get sorted fast.

Whilst some people may see payday loans as their quick fix to financial stability, there are however opposing views. Here are some of the advantages and disadvantages associated with cash advance, payday loans.  Take a good look at these and weigh if a payday loan is good or bad for your financial health.

Advantages of cash advance payday loans

  • Fast approval
  • Loans are available even for a high-risk borrower
  • Pay for emergency situations fast. Did your car break down? Is there an emergency field trip in your child’s school? Or, are you taking advantage of the big discount on equipment for your business? Use it any way you like it, cash advance payday loans can save the day.

As long as you can assure the lender that you can repay, you can get the money you need fast and you don’t have to worry about receiving notices that your utilities will be cut off because you missed the payment.

Disadvantages of payday loans

Payday loans usually come with very high-interest rates. These rates can come in the form of a flat fee or a certain percentage of the cash advance payday loans. For example, a cash advance lender may charge 20% per $100 borrowed. This means that the borrower has to pay $20 in interest on a monthly basis. If you missed a payment on the first month, the interest will accumulate and you’ll be paying more than your original debt as the time goes on and the debt remains unpaid. 20% may not be a big deal if you will pay it outright when you receive your pay for the month. But, if you took a loan 7 days before your payday, you will be paying a large fee for a 7-day loan.

If you’re borrowing against your salary, where will you get money to pay for your expenses before the next payday? It can lead to another debt until you can’t get out of it anymore.

Is cash advance loan a good idea?

A person has too much debt when he owes more than what he can afford to pay, simply because his income is lower than his debt, and his liabilities are greater than his assets. If you’re struggling with debt, another debt can either help you get out of it, or drag you deeper into debt. It is a choice you have to make, especially in the way you will use your money.

Better alternative to payday loans

When you need money for emergency use, you can turn to Australian Lending Centre for short term loans, which are a safer solution than payday loans. Whether you are going to use the money for business or personal matters, short term loans are easy and quick solutions that you can count on. You can get approved in a few hours and get the money faster than banks do.

Pay for personal or business expenses, invest and grow your money, by using Australian Lending Centre short term loans. It is a better option than cash advance payday loans. Contact the experts of Australian Lending Centre today.

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Debt Consolidation Bad Credit Loans Personal Loans Short Term Loans

Quick Loan Myths Everyone Should Stop Believing

Quick Loan Myths: Debt Consolidation
Quick Loan Myths

If we are honest, there are a lot of quick loan myths in the loan industry which have negative perceptions. There are many misconceptions as some lenders employed unethical lending practices. As a result, a range of false or exaggerated perceptions has emerged. Still, you should know there are always two sides to every story.

1. Quick Loans Are Schemes That Rip You Off

To start with, due to the bad publicity that quick loans have received in recent years, most people have come to believe that these loan products are rip-off schemes. This one of the main quick loans myths.

Quick loans are suited for people that are in urgent need of cash but cannot access it elsewhere. Therefore, as long as you meet the loan repayment terms, everything is fine. Things are likely to get off track when you miss making repayments or you default – which applies to all types of loans.

2. Quick Loans Are Beneficial to Lenders Only

Moving on, another of the common quick loans myths is that providers of quick loans want to rip-off customers. However, considering that the lending criteria for these loans are really permissive, it makes sense for the interest rates to be as high as they are – especially since these loans usually don’t imply a credit rating check.

People with poor credit rating can seriously find these financing options life-changing. The only requirement you should meet is to have a steady income so that you can repay the loan in time. Also, since this type of loan doesn’t require collateral, the additional costs are greater than in the case of other types of financing.

3. Quick Loans Have Concealed Fees and Additional Costs

The list of popular myths regarding short-term loans continues. Many people are under the impression that payday loans come accompanied by hidden costs and fees the lender hesitates to disclose. The reason behind this assumption is that the majority of borrowers aren’t responsible enough to go through all the terms and conditions included in the signing papers.

It is against the law to conceal fees and additional costs – that is to say, all lenders based in Australia must be 100 percent transparent and upfront concerning the terms and conditions of the loan. Therefore, in order to avoid such scenarios, borrowers should take the time to scrutinise all the information about the loan product.

4. Quick Loans Are for People with Serious Financial Problems

Furthermore, there are also quick loan myths that short-term loans are provided for poor people with unstable financial situations. As mentioned, quick loans do not reflect financial stress, they simply offer people with an immediate alternative to cash.

Additionally, all types of people deal with financial difficulty. Therefore, it would be wrong to assume that whoever gets a quick loan is part of a specific segment of the population. As a matter of fact, when you need money for an emergency, it simply means that you’re going through something and there’s no other way in which you can get the money you need.

5. Payday Lenders Use Threatening Strategies to Collect Payments

While it’s true, to some extent, that some payday lenders use aggressive marketing techniques to promote their loan products, this doesn’t mean that they use threats to collect the payments.

Truthfully, reputable lenders, such as Australian Lending Centre are transparent and upfront regarding the terms of the financing. At the same time, reliable lenders never use these tactics. This merely means that you should do your research before picking out a lender out of the sea of lenders.

6. Taking Out Quick Loans Means That You’re Irresponsible

There is a common misconception that those who apply for a quick loan are financially irresponsible. Nevertheless, as long as you consider both the pros and cons of this decision, this doesn’t apply. It is implied that each financial decision has a range of pros and cons. It makes total sense for quick loans to have both pros and cons.

Evidently, the pros are that you get quick access to cash when you need it, without having to worry about the application process, adding collateral or a co-signer. When you need cash ASAP you don’t have time for these.

On the other side, the cons are that the interest rates are high and that, if you default on the loan, you might end up in financial hot water. Still, this applies for all types of financing – meaning that, regardless of the loan product you want to apply for, you should be 100 percent sure that your financial situation allows you to cope with making repayments.

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Personal Loans

The Best Bad Credit Loans – Personal Loans Vs Payday Loans

bad credit personal loan||bad credit personal loans||personal loan

Personal loans vs Payday Loans – which are the best when you have poor credit? Find out the best option when you’re in need of cash. This article is the ultimate personal loans vs payday loans standoff.

What Are Payday Loans?

You have heard of post-dated check loans, cash advance loans and payday loans. They all mean the same. You apply for a loan secured by your bank account debit authorisation or check and receive the money into your bank account. It is appealing to borrowers with poor credit because lenders don’t check your credit rating in determining the amount that you can borrow. However, it measures your ability to borrow based on specific criteria which may include your income, assets and other personal circumstances.

However, a payday loan has its own disadvantages.

Why Are Payday loans are costly?

Unlike personal loans with a minimal interest rate in defined periods, the payday loan fees may range from 15% annual percentage rate to almost 400%.

If you needed money and you decided to borrow $300, you may have to pay a finance fee of $40 to get it. Your total loan is $340, but you will only receive $300. If the loan period is 14 days, you will have to pay $340 when the period ends. But, if you missed your payment, you have to pay additional fees.

Here’s another example. On January 1, Joe took out a $100 with $20 interest loan for 30 days. He failed to pay at the end of the period but decided to pay after another 30 days. This time, he has to pay the original loan of $120 ($100 plus $20 interest) plus $24 interest of the original loan.

But, why do many Australians take out payday loans? Despite the fact that Personal loans for poor credit, not payday loans are affordable loan options, many Australians still use payday loans because of lack of access to credit cards. Some borrowers have no credit and others have credit problems. With strict banking regulations, it is almost impossible for someone with zero credit history and a low credit rating to obtain financing. That’s why many people use payday loans for poor credit.

Payday Loan Debt Multiplies Fast

In comparison, with a reasonable interest rate, personal loans from Australian Lending Centre are easy to repay. There are no hidden costs to be afraid of. But, this is not the case in payday loans. If you don’t like to pay up to ten times the payday loan amount, you have two options–pay your payday loan as soon as possible, or don’t get one.

Payday loans can easily quadruple even if you didn’t mean to. If you cannot repay a payday loan as soon as you can, there is a big chance that you will get into trouble with these types of loans. The lenders will charge you expensive additional fees for not repaying the loans at the end of the period.

It is easy to get, but difficult to pay

When you leave your debt unpaid for several periods, you may wake up one day owing more than you are able to repay. Not only is it an unpleasant experience, but it is also damaging to your credit as well.

Some payday lenders also have terrible debt collection policies like harassment, threats of litigation and other forms of provocation.

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Short Term Loans

Ads for Short Term Loans Banned on Google

short term loans

According to recent settlements, Google have banned ads for Short Term Loans. The decision was triggered by the concern that these ads have a specific predatory nature. On that account, it has been established that the search engine will ban ads featuring loans for which the repayment is required within 60 days after the date of issue. But what is it that makes these loans far from the ideal choice for the Australian borrower?

The truth about short term loans

These short term loans stand under the question mark as they come with significant amounts of interest and are causing people to sink much deeper into debt. Consumer Action Law Centre has gladly received this establishment. However, there has been a range of inquiries regarding the way in which the mechanism will function.

For starters, Google has included an additional ban in the US for loans that are linked to an annualised percent that surpasses 36. However, after having agreed on that for the US the same mechanism was suggested to Jason Pellegrino, CEO of Google Australia. According to his affirmation, the same initiative that firstly emerged in the US will be extended to Australia as well, meaning that short term loans that have an annualised interest percent over 48. That initiative is expected to balance payday loans with the financial products from our country.

As made official by Google, this ban has come into force on the 13th of June, which has been the first time Google has taken the initiative by announcing a global ban for a broad range of financial products.

These short term loans, in line with the research conducted in this direction, indicate that, in most situations, they result in high default rates and unaffordable payment for users. The primary purpose is to protect each user from deceptive financial products and offers. Without fear of contradiction, this move won’t affect reliable and reputable banks and non bank lenders, such as the Australian Lending Centre, which provides a great variety of bad credit loans, debt consolidation loans, car loans, and etcetera.

The main reason people are lured into taking up payday loans is that they are presented to them in an attractive manner, similar to a quick, efficient fix to a complicated problem. As many people who are trying to make ends meet will assume that such a loan will put an end to their problems, they somehow fail to acknowledge that these loans are linked to high fees and charges, which will further get one in a vicious cycle of debt he/she cannot escape.

That’s why we recommend people who are in a difficult financial situation to steer clear of these payday loans, and opt for the guidance of a professional financial counsellor.