Things can get tough for an unemployed person whenever he is need of money and don’t have any savings. A loan is the obvious way of managing some cash, but not every loan option is created equal.
In the UK, there are many loan options for the unemployed. Selecting a loan option with soft terms and conditions and minimum interest rates can be hard to find, and needs some awareness and study. Here are some options for the unemployed people in the UK.
1. Secured Loans
Secured loans are a common loan option for the unemployed living in the UK. In secure loan option, you are required to offer your asset, property or car as a security to the loan provider.
It is clearly written in the terms and conditions that if you fail to pay off the debt and interests at the specified time, the provider holds right to gain control over the asset.
2. Guarantor Loans
This loan is somewhat similar to Secured Loan but here, a second person takes guarantee and responsibility to pay off the debt. This person could be one from your family or a friend.
In the guarantor loan, the guarantor has to pay the interest or loan if you fail to do so. Trust is the most significant aspect here, and you should know the implications your guarantor can face in case of your failure to pay debt.