People with permanent and regular income without records in the register have doors open to virtually all credit companies. But what if you are unemployed or indebted – are there any companies that will lend you this?
To begin with, it should be noted that by law the creditor is obliged to properly check the client’s ability to repay the debt. The creditor should take into account the client’s income and expenses and responsibly estimate whether he or she will have enough money to pay off the loan.
If the client fails to verify the client sufficiently and the client has problems with repayment over time, the credit agreement may be declared invalid.
Thus, the law does not explicitly say that an unemployed person cannot get a loan, but every creditor will think carefully about lending or lending to people without work or over-indebted.
Assessment of assets
There is also the possibility that the creditor does not look at the applicant’s income and expenses but mainly evaluates his assets. It is possible to repay the loan not from its income but from the sale of the property. Thus, in theory, an unemployed person with sufficient and demonstrable assets can also get a loan.
How about borrowers?
The situation is similar with the borrowers – here too, the lender should compare the income and expenses and if the client has enough funds after deducting the expenses, including all installments, he should be able to get the loan. However, if it is a chronic debtor (this can be checked by the creditor by checking the registers) – he should not get the loan.
However, each case is assessed individually by the lender and should take into account as much information as possible about the client in advance.
Where do the unemployed have a chance?
An example of a loan that a person without a job can get is a so-called SMS loan – a small short-term loan undemanding on the client’s creditworthiness, or a non-bank American mortgage – a non-purpose loan with property pledge.
How to Get Out of Debt: Loan Consolidation
Debt consolidation may be on the way out of a vicious circle where income is not enough to pay more loans. Consolidation is the amalgamation of more debt and transfer to one financial company. This will repay the installments for a longer period of time, which will result in a lower monthly payment. You can apply for debt consolidation with a number of banks and non-banks. In some cases, property needs to be guaranteed. Learn more about loans to consolidate existing debt here.
Free financial advice
If your situation is so serious that debt consolidation will not solve it, it is a good idea to contact one of the free financial advisors.